Mark Falzone is Kennedy Funding’s executive loan officer. — Courtesy: Kennedy Funding
By Joshua Burd
Kennedy Funding has closed a $1.5 million land loan to the would-be developer of a 420-unit multifamily project in southwest Alabama, the firm announced last week.
The borrower, Vision of Loxley APT, used the funds to acquire the fully entitled 41.09-acre site along Highway 59 in Loxley, the Englewood-based direct private lender said. That marked the completion of a transaction that took just 18 days, enabling the borrower to satisfy a contractual acquisition deadline on the Baldwin County property.
The developer is buying the site for $3 million.
“This was exactly the kind of opportunity Kennedy Funding is built for,” said Mark Falzone, executive loan officer at Kennedy Funding. “The borrower faced a firm purchase deadline, brought substantial equity to the transaction and had a development-ready property.
“We recognized the urgency immediately and moved quickly to provide the funding needed so the acquisition could move forward.”
The financing, which was brokered by Andrew Williams of San Diego-based KLEI Capital, had a 9 percent first-year interest rate.
“Deals like this demonstrate where Kennedy Funding’s private lending adds the most value,” said Kevin Wolfer, the firm’s CEO. “When qualified borrowers face extremely tight deadlines, they need certainty of execution. Our team was able to provide that certainty and keep this project moving forward.”
Located along Highway 59, one of Baldwin County’s primary commercial corridors, the site has direct access to Interstate 10 while placing future residents within convenient commuting distance of Mobile, Pensacola, Florida, and Gulf Coast beaches, according to a news release. The lender added that the route connects rapidly expanding residential communities with employment centers, shopping, health care and transportation, noting that population growth, expanding medical practices, manufacturing, logistics, tourism and new business investment continue to drive demand for housing throughout the region.
Adding to the area’s momentum is the nearby Gulf Alabama Industrial Center, a more than 900-acre industrial development planned to include some 12 million square feet of industrial space, Kennedy Funding said. The project is expected to generate thousands of jobs while strengthening the Highway 59 and Interstate 10 corridor as one of the Gulf Coast’s premier logistics and industrial hubs.
On the corporate side, Novelis is constructing a $4.1 billion dollar aluminum rolling and recycling facility in Baldwin County that is expected to create significant job opportunities, the news release said. Nearby Mobile is also home to Airbus’ U.S. manufacturing facility and Austal USA, a ship manufacturer headquartered in the city.
