Vines of Sandhill in Milton, Delaware — Courtesy: Kennedy Funding
By Joshua Burd
Kennedy Funding has closed a $1 million bridge loan for a single-family residential development in southern Delaware, the Englewood Cliffs-based firm announced Monday.
The borrower, Sandhill Real Estate Investments LLC, is planning 192 homes over six phases in the town of Milton, according to the direct private lender. The developer has already completed and sold off three of those phases, leaving just under 43 acres remaining.
Sandhill will use the proceeds of the short-term bridge loan for working capital for roadwork that will move the Vines of Sandhill development project into its final stages, Kennedy Funding said.
“Banks know that buying land can be risky under the wrong circumstances, but they also wrongly assume that all unimproved land purchases are bad,” said Kevin Wolfer, CEO and president of Kennedy Funding. “Direct private lenders like us know to look at the details of the deal that spell out how the land will be used.”
In announcing the deal, Kennedy noted that each single-family home built on the site averages 9,727 square feet. The option to purchase completed lots is exclusive to Capstone Homes and NVR Inc., the parent company of Ryan Homes.
Milton is about 80 miles south of Wilmington, Delaware.
“Between the Milton area’s historical significance and present-day proximity to key economic and tourist hubs, we immediately saw the merits of the Vines of Sandhill deal,” Wolfer said. “We are proud to have closed this loan, as we regularly receive similar real estate funding requests and remain among the few lenders willing to close these loans. We’re committed to serving this market as it continues to grow.”
