Kennedy Funding Closes $2.475 Million Loan for 180-acre Bennett, Colorado, Home Development
ENGLEWOOD CLIFFS, N.J. – Kennedy Funding, a New Jersey-based direct private lender, announced today that it has closed a $2.475 million loan to Colorado real estate developer Ban RE Group. Loan proceeds will be used for debt payoff and working capital on a 180.64-acre tract in Bennett, Colorado.
The raw land is an extension of the Antelope Hills residential development, located 45 minutes east of Denver. The developer plans to construct 149 new single-family homes on this new extension to the property.
“This land loan is helping our borrower refinance and access the capital required to continue investing in the Antelope Hills development,” said Kevin Wolfer, CEO, Kennedy Funding.
Wolfer said that the borrower faced some challenges working with a conventional lender because of the difficulties connected to lending on land.
“We bring decades of experience in closing difficult and non-traditional loans, including land loans like the one we closed for Ban RE Group,” Wolfer said.
“There were lots of challenges and so many moving parts on this loan, particularly when you’re dealing with a land loan,” added Kimmy Humphrey, Principal of Capital Atlantic Solutions, Virginia Beach, Virginia, and the broker on the deal. “Kennedy Funding is one of the only lenders that could get this deal done and closed. They have a way of getting tough deals to the closing table.”
Wolfer said that a significant part of closing these types of loans is the ability to see the deal as more than just an application, but to see the potential of the project. The fast-growing metropolitan Denver area, coupled with a hot housing market, means that developments like Antelope Hills have excellent potential.
“A town like Bennett is the perfect blend between enjoying the quiet of a suburban area while being right next door to one of the country’s most loved cities,” Wolfer said. “We believe this development will be a great success.”
The Antelope Hills development is located directly off I-70, which provides direct access to the heart of the city. Bennett is also within one hour’s drive of Denver International Airport.
According to Wolfer, housing demand has been on the rise in the greater Denver metro area due to the area’s low unemployment rate and a strong local economy. Many families are also drawn to the area by the numerous nature attractions and outdoor activities the area is known for, such as hiking and biking.
“Low mortgage rates, new industries, job opportunities, and outdoor recreation have sent the Denver housing market into overdrive,” Wolfer said, adding that housing prices have increased significantly over the last few years. “There is a huge demand for new construction as families move to the area. There’s no better time for Ban RE Group to continue building new homes.”
According to Wolfer, many of the leading employers in the greater Denver metro area are in the healthcare, finance, airline, and university sectors. Even with the economic hit dealt by the COVID-19 pandemic, Wolfer said that Denver fared relatively well and that many jobs have been recovered.
“The greater Denver metro area is still growing strong, despite the blows COVID-19 dealt to the community,” Wolfer said. “The demand for housing will continue, and with Ban RE Group and Antelope Hills, that housing supply can continue to meet the area’s demands.”
About Kennedy Funding
Kennedy Funding is a global direct private lender specializing in bridge loans for commercial property and land acquisition, development, workouts, bankruptcies, and foreclosures. Kennedy Funding has closed more than $3 billion in loans to date. Their creative financing expertise provides funding up to 75% loan-to-value, from $1 million ($3 million international) to more than $50 million in as little as five days. The company has closed loans throughout the United States, the Caribbean, Europe, Canada, and Central and South America.