Kevin Wolfer, CEO of Kennedy Funding
By Joshua Burd
Kennedy Funding has closed on more than $2 million in financing for a developer’s purchase of 17.5 acres in northern California.
The direct private lender, based in Englewood Cliffs, said it provided the $2.145 million loan to Tanglewood Racquet Village LLC to acquire raw land in Linda, about 40 miles outside Sacramento. The borrower is planning a 400-unit multifamily development called the Tanglewood Racquet Club.
In announcing the deal, Kennedy Funding said the loan was more than 38 percent above the property purchase price of $1.5 million, leaving excess funds to cover other expenses such as closing costs and fees.
“It is a welcome sign when property valuations arrive at values well in excess of the purchase price,” said Kevin Wolfer, CEO of Kennedy Funding. “Independent appraisers are usually pretty cautious when they value real estate today. This demonstrates that many astute borrowers have reasonable expectations when it comes to their property values.
“When our team performed its due diligence by hiring a nationally recognized appraisal firm, we found tremendous value and upside potential. We were confident that we could offer a loan in an amount significantly more than the purchase price.”
Wolfer said the valuation came back higher than the purchase price because the property is already zoned and approved for high-density multifamily construction. The buyers spent significant time obtaining entitlements and conditions of approval, while the project is essentially shovel-ready with the appropriate infrastructure in place.
Located west of Goldfields Parkway at Riverbank Drive, the new development will include one- and two-bedroom units across 10 two-story buildings and 10 three-story buildings, according to a news release. Plans also call for a community center and a storage building.
Kennedy Funding also noted that the site is immediately behind Yuba College and six miles from Beale Air Force Base, both of which drive the need for housing in Linda.
“This development will provide much-needed new housing for singles, couples or new families, especially those affiliated with Yuba College or Beale Air Force Base,” Wolfer said.
