By Joshua Burd
Kennedy Funding has closed $3 million in financing to the owner of a private residential development site in the Hamptons.
The lender, which is based in Englewood Cliffs, said it completed the land loan to JD St. Barth’s I using property the client owned in Saint Barthélemy as collateral. The borrower is using the proceeds to fund construction of a private home in Southampton, New York.
“While this was certainly a unique setup, we drew on our extensive experience working on land loans and on international loans to ensure our borrower secured the funding necessary to fund construction on their new home,” said Kevin Wolfer, CEO of Kennedy Funding.
Notably, Wolfer said the borrower had strong credit and that the property was owned outright, with no outstanding debt against the St. Barth tract. Additionally, the one-acre parcel was appraised at more than $2 million higher than the purchase price.
“In any other situation, it would not have even been a question that a borrower with a profile this strong would have been approved by a traditional financing institution,” Wolfer said. “However, the complexity of this loan, coupled with the fact that it crossed international borders, made this untouchable for any other lender but Kennedy Funding.”
The firm said its client purchased the St. Barts parcel in 2014 for $5 million and has demolished the existing house, adding that a permit has been issued for a seven-bedroom, 500-square-meter private home, which is zoned for residential and open space use. The site is a short drive from the St. Jean Beach commercial area and close to many significant commercial and recreation destinations throughout the island.
The deal is the latest in a long line of loans that Kennedy Funding has closed involving international borrowers and properties.
“St. Barth is a well-known luxury destination that attracts tourists from all over the globe,” Wolfer said. “Tourism continues to be strong, despite the challenges presented by the past year, and Kennedy Funding has a lengthy track record of closing loans abroad.”