The Point Alegre Development in Belize — Courtesy: Kennedy Funding
By Joshua Burd
Kennedy Funding has added to its international lending portfolio with the closing of a $3 million loan for a waterfront residential development in Belize.
The Englewood Cliffs-based lender said the borrower, which is affiliated with the Point Alegre Development, will use the proceeds for refinancing, debt payoff, construction and working capital to fund the development of 19 acres zoned for residential tourism inside Orchid Bay. The project, which has 30 parcels within the current phase, is part of a master-planned 114-acre resort community located in the Corozal Bay inlet.
This deal is the second loan that Kennedy Funding has closed in Belize, a Central American country near the Caribbean Sea.
“Traditional lenders shy away from the legal, real estate and financing challenges that accompany international lending, but a lender like Kennedy Funding has the necessary experience to successfully close loans abroad,” said Kevin Wolfer, CEO and president of Kennedy Funding. “The loan for Orchid Bay required significant legal work and knowledge of local, regional, and international real estate and financial laws. No typical lender could make this type of deal happen. Thanks to our years of work and robust track record in many regions abroad, including the Caribbean, Kennedy Funding successfully navigated the legal framework necessary to close.”
According to Wolfer, the first phase of development on the site has been constructed and fully sold. The borrower has already developed and sold 24 casitas, 12 condos, a bed and breakfast property, a beachfront restaurant and more than 20 single-family homes.
Additionally, Orchid Bay has sold an additional 99 single-family residential lots, to be developed by a third party, according to a news release. The remaining to-be-built phases include a mixture of villa residents, a luxury boutique hotel, bungalow residences and two condominium buildings.
Wolfer added that Orchid Bay has also completed construction of the roads, an already-running water treatment system is ready for expansion and most lots have already been connected to underground electric service.
“With many parcels already sold or under construction in an affordable and in-demand vacation destination, it was clear to us that Orchid Bay is already performing well, attracting buyers looking to own a slice of paradise,” he said. “We see the rising real estate values and share the developer’s vision of the property. That’s what helped make this deal happen.”