Kennedy Funding Closes $1.15 Million Loan for New Industrial Park in Macomb Township, Michigan
Direct private lender steps up to the plate while traditional lenders dodge investing in the Great Lakes State
ENGLEWOOD CLIFFS, N.J. – An empty 55-acre parcel of land in Macomb Township, Michigan may appear to be a risky investment to the average financing institution, but Kennedy Funding didn’t see a challenge — they saw an opportunity to invest in a thriving community.
Kennedy Funding, the Englewood Cliffs, New Jersey-based direct private lender closed a $1,150,000 loan to Elite Sport Ventures, LLC. The loan is designated to pay off existing debt and for working capital to subdivide the collateral and develop an industrial park at a vacant 55-acre property located at 17300 23 Mile Road, approximately 45 minutes north of Detroit and within short distance from routes 53 and 59 and Interstate 94.
According to Kevin Wolfer, CEO of Kennedy Funding, traditional banks often do not grant land loans in Michigan due to an unsteady job market and stunted industry growth.
“Most of Michigan has seen steady declines in population and in job growth, which makes it a risky prospect according to the rigid requirements set by traditional financing institutions,” Wolfer said. “As private lenders, we can examine the merits of each deal independent of any preset factors, so we were able to support Elite Sport Ventures as they pursue a development plan.”
Despite Michigan’s overall sluggish growth, Macomb County has exhibited promising signs of an improving economy: Macomb Township is Michigan’s fastest-growing major municipality, with a 44 percent population increase between 2000 and 2010. The county’s industrial real estate market has experienced low vacancy rates and increasing rental rates in recent years. Neighboring Shelby Township will become home to a 1,000,000-square-foot Amazon fulfillment center in 2018, with the potential to bring 1,000 jobs along with it.
“Instead of writing off the development as a high-risk venture in a struggling state, we were able to see the property’s potential and share in the borrower’s vision,” Wolfer said. “The growing population, commerce and industry are all reasons to invest.”
Elite Sport Ventures, which acquired the property in December 2014, intends to subdivide the property and develop smaller parcels. A 2.55-acre portion of the site located near 23 Mile Road will be sold and developed into a hotel. Elite Sport Ventures plans to sell a 39.89-acre parcel to a related entity of Michigan property developer and manager Kojaian Companies, pending site plan approval. Additionally, the northern portion of the site may be re-zoned to allow for commercial use; previous plans to reclassify the property for commercial use were denied by the local zoning board.
“Elite Sport Ventures’ property is located among materials suppliers, tool shops and many other industrial uses,” Wolfer said. “The industrial complex will be right at home at 17300 23 Mile Road.”
About Kennedy Funding
Kennedy Funding, is a nationwide direct private lender specializing in bridge loans for commercial property and land acquisition, development, workouts, bankruptcies, and foreclosures. The principals of the company have closed over $2.5 billion in loans to date. The firm’s creative financing expertise enables the closing of loans of up to 75% loan-to-value, from $1 million to over $50 million, in as little as five days. Kennedy Funding continues to actively seek new funding opportunities throughout the world.