Kennedy Funding, an Englewood Cliffs-based direct private lender, announced June 7 it 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.
The land is an extension of the Antelope Hills residential development, located in Bennett, Colo., just 45 minutes east of Denver. Ban RE Group 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, chief executive officer, 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, Va., 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 added. “We believe this development will be a great success.”
The Antelope Hills development is located directly off Interstate 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 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.