By Joshua Burd
Kennedy Funding has closed a nearly $3.5 million land loan to the developer of a large mixed-use project in downtown San Antonio.
The direct private lender, which is based in Englewood Cliffs, said Essex Modern City LLC will use the proceeds to cash out an existing loan and advance the planning and engineering stage of the eight-acre site. It will also complete so-called quiet zone construction at the assemblage, located at 51 Essex St., in partnership with the city and Union Pacific railroad.
Plans call for 160,000 square feet of retail and office space and some 800 residential units of varying sizes, along with parking spaces and an open park area, according to a news release. The new $3.46 million loan by Kennedy Funding is secured by the seven parcels of vacant land that make up the site.
“San Antonio is one of the fastest-growing cities in the United States,” said Kevin Wolfer, CEO of Kennedy Funding. “Real estate values in the metro area have appreciated 40 percent since 2015, and coupled with low unemployment and a growing population, this makes the Alamo City an excellent place for new construction that will be home to living, working and recreation for its residents and visitors.”
The so-called Essex Modern City project will occupy a site minutes from the Jose Lopez Freeway and Interstate 37, one that was approved for mixed-use development in 2016. Wolfer noted that the borrower is in its final stages of the entitlement process for the project.
“All Essex Modern City needed was the funding — everything else was in place,” Wolfer said. “Seeing a clear plan for the site and the city’s support, we were able to quickly process and approve their loan application.”