Kevin Wolfer, CEO of Kennedy Funding
By Joshua Burd
Kennedy Funding, an Englewood Cliffs-based direct private lender, has closed a $1.815 million land loan to the owner of more than 30 acres outside Detroit.
The company said the borrower, Bloomfield Technology Park LLC, will use the financing to pay off the existing first mortgage on a stretch of raw land in Bloomfield Hills, Michigan. Remaining proceeds will be used as working capital to update site approvals, the firm said, noting that the property is zoned as a research park district that is ideal for business and commercial use.
The 31.32-acre property is currently listed for sale at $4.9 million.
“Between the property type and the current economic climate, the borrower could not secure a loan, even with stellar credentials,” said Kevin Wolfer, Kennedy Funding’s CEO. “There is no willingness for traditional lenders to lend on land, and the currently tight credit market did not make this tough prospect any easier.”
In announcing the deal, Kennedy Funding said the site is just a few blocks from Select Specialty Hospital and major retail. Bloomfield Hills, part of the greater metro Detroit area, is expected to experience growth in key economic sectors in the coming years, including growth in employment, home values and gross metro product.
Additionally, the city has the highest income in Michigan and the third-highest income for a municipality with more than 1,000 households in the U.S., attracting talent and enterprise to the area, the lender said.
“All signs point toward continued prosperity for Bloomfield Hills and the greater metro Detroit area, making the Franklin Road site an ideal one for many opportunities in growth sectors like tech and research,” Wolfer said. “Any new enterprise has a great chance for success in a city like Bloomfield Hills.”