By Joshua Burd
Kennedy Funding has closed on nearly $2 million in financing for the owner of two land tracts in Fort Worth, Texas, paving the way for a separate transaction in the city.
The Englewood Cliffs-based lender said the local borrower, Plaza Tierra Caliente Inc., will use the $1.96 million land loan to cash out on the parcels at 850 and 1000 Oak Grove Road. The company is under contract to sell the properties, which total 11.59 acres, for $2 million and is also contracted to acquire 19.8 acres at 6250 Old Hemphill Road for $1.75 million.
“The borrower came to us with an unusual set of circumstances, but we were able to find a way to secure the funding he needed,” said Edwin Urrego, executive loan officer at Kennedy Funding. “As a direct private lender, we have the freedom and flexibility to examine every deal as it stands on its own merits.”
In a news release, Kennedy Funding touted the completion of the deal despite the ongoing coronavirus crisis. It is also the firm’s second land loan closed in ass week for Plaza Tierra Caliente, following a $3 million transaction for the acquisition and development of a 101.46-acre commercial and recreational site in Port Charlotte, Florida.
“Lenders simply will not consider land loans, especially during a period as tumultuous for real estate as COVID-19,” Wolfer said. “Kennedy Funding works closely with borrowers to find ways to approve their applications. We are here to help borrowers obtain the funding they need.”
According to Wolfer, the buyer of the two Oak Grove Road properties plans to construct multifamily housing on the site. The property currently has a single-family home and a small storage building noted to be in poor condition.
“The city of Forth Worth has wanted to construct multifamily housing in this area for quite some time, so there was significant support to see this deal advance,” Wolfer said.
Wolfer noted that the Old Hemphill Road property is considered an eyesore by the city, previously housing a flea market and an 18-wheeler parking area. But the parcel sat idle for a long time and did not provide any value to the city.
“These new developments will bring jobs, housing and revenue to the city and its residents,” Wolfer said. “We are glad that we could help Plaza Tierra Caliente secure the funding needed to advance projects that will beautify and bring value to this area of Fort Worth.”