By Joshua Burd
Kennedy Funding has completed another loan in the Caribbean, closing $2.3 million in financing to the owners of more than 60 beachfront acres in the Dominican Republic.
The Englewood Cliffs-based lender said the borrower, an investment group listed as Atlantic Ocean Partners LLC, will use the proceeds to pay off debt and for working capital for the property in the province of Maria Trinidad Sanchez. The tract, located on Playa Diamante on the country’s northern coast, spans 60.48 acres tract and is approved for a mixed-use resort and residential development.
The borrower had purchased the property outright for $4.945 million in 2008 and plans to ultimately sell the property.
“Atlantic Ocean Partners came to Kennedy because they know firsthand that we have the knowledge, experience and track record to close the deal,” said Kevin Wolfer, CEO of Kennedy Funding. “We take great pride in knowing that our firm has garnered a worldwide reputation for closing loans when traditional lenders cannot.”
According to the direct private lender, the property is zoned for agricultural, residential and touristic use. While the pandemic has slowed international tourism, the firm expected the Dominican Republic to experience a resurgence as virus transmission slows and when travel restrictions loosen.
Playa Diamante is in a secluded, undeveloped area that is easily accessible by bus and by vehicle via Route 5, a main thoroughfare on the Dominican Republic’s northern coast, according to a news release. Playa Diamante is also close to renowned tourist destinations like Playa Grande Golf and Ocean Club and Orchid Bay.
The deal marks Kennedy Funding’s fifth loan in the Caribbean since the start of the COVID-19 crisis.
“To close a loan outside the U.S., you must have a knowledge of local laws, regulations and requirements,” Wolfer said. “Each Caribbean nation has its own set of challenges. It’s rewarding when you can get another loan to the closing table.”