By Joshua Burd
The owner of a resort under construction in Ontario, Canada, is set to acquire another 125 acres for the project, having secured a nearly $1.9 million loan from Kennedy Funding.
The lender, which is based in Englewood, said the parcels in McMurrich/Monteith Township include 74.74 acres for what would be the development’s third phase, part of which is a proposed 21-lot subdivision to build single-family homes. The remaining 50 acres will be built out in the sixth phase of what’s known as the Axe Lake Resort.
The $1.883 million loan to Axe Lake Resort Inc., which used the proceeds to buy the raw land at 52171-0627 Woodland Drive, was one of two recent closings for Kennedy Funding, the firm said. The second deal was a $1.445 million working capital loan for an events and hospitality space in Wallkill, New York.
“Closing challenging loans is nothing new for Kennedy Funding, but closing two loans in a week is noteworthy and a testament to our ability to find ways to say ‘yes’ to borrowers,” said Kevin Wolfer, the firm’s CEO and president. “It’s especially notable because this deal with Axe Lake Resort was for a land loan outside the U.S., which makes closings especially challenging.”
According to a news release, the Axe Lake property is part of the Almaguin Highlands area in northern Ontario. Kennedy Funding noted that McMurrich/Monteith has a population of less than 1,000 and is a roughly 3.5-hour drive north of Toronto. The lake and the surrounding area are a popular destination for warm water fishing, hunting, snowmobiling, hiking and boating for the Ontario area.
“Raw land is considered a risky investment by almost every conventional lender in the U.S., especially raw land deals located outside the country,” said Edwin Urrego, the firm’s executive loan officer, noting that the borrower is using the land as collateral. “We’re not here to turn down borrowers, though. We’re here to examine the merits of the deal and make informed decisions based on the borrower’s plans and vision.”
He added: “The new development will open this beautiful area to more visitors who want to appreciate the natural beauty that Ontario has to offer.”
Kennedy Funding also pointed to Ontario’s expected growth by way of new investments and economic development. Notably, Honda is investing $15 billion into building electric vehicle factories, an initiative that’s expected to add at least 1,000 jobs to the province’s labor market.
“Although challenging economic conditions have affected Canada for the past few years, housing demand in Ontario is expected to grow steadily,” Urrego said. “These strong demographic trends are boosting residential and vacation investment opportunities in the province, making new developments like Axe Lake Resort a hot commodity going into 2025 and beyond.”