Englewood Cliffs-based Kennedy Funding announced the closing of a $2.15 million loan to California-based Tanglewood Racquet Village LLC.
The loan will help purchase a 17.5 acre parcel of land in California that will be developed into a 400-unit multifamily development called Tanglewood Racquet Club. It will be comprised of one- and two-bedroom units across 10 two-story buildings and 10 three-story buildings. There will also be a community center and storage building.
According to Kevin Wolfer, CEO of Kennedy Funding, the loan was more than 38 percent above the property purchase price of $1.5 million.
“It is a welcome sign when property valuations arrive at values well in excess of the purchase price,” Wolfer said. “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. The excess loan proceeds can be used to cover closing costs, fees, and/or other development expenses which may arise.”