Loan secured at 8% interest rate; proceeds to fund mixed-use development with 578 multi-family units, 31,500 sq. ft. of commercial space
ENGLEWOOD, N.J., April 9, 2024 /PRNewswire/ — When it comes to securing a land loan, even the savviest borrowers can expect to face some challenges. That’s why Dhaliwal TC Landing, LLC came to Kennedy Funding to close a $2.7 million loan to build a mixed-use property in the Tacoma, Washington, suburbs. Loan proceeds will assist with payoff and working capital for the development of 12.2 acres at 1926 Meridian Ave East in Edgewood, Washington.
“Borrowers don’t always understand the process and there were a lot of hurdles along the way,” said Jackson Zhang of Golden Tree Lending, who connected Dhaliwal TC Landing with the NJ-based direct private lender.
“We faced environmental issues and problems with the developer agreement,” he said, “but Kennedy Funding did everything they could to get the loan to the closing table.”
Notably, the $2.7 million loan was secured at an 8% interest rate.
“Our work isn’t just to close deals, but to secure favorable terms,” said Kennedy Funding CEO Kevin Wolfer. “The strength of this deal allowed us to secure a good interest rate.”
Development of this project has been long in the making. In 2019, the borrower purchased the collateral in four individual and contiguous tax parcels for $3 million, with assemblage costs of $6.3 million. The borrower worked extensively with the town to approve construction plans for the development, called Dhaliwal Landing.
“There are countless moving parts in any transaction, and this one was no exception,” said Edwin Urrego, Executive Loan Officer, Kennedy Funding. “Our team has a track record of adaptability because we see our clients’ vision. We’re happy to have deftly navigated the challenges and successfully closed for another satisfied borrower.”
“For more than 35 years, we’ve been the go-to lenders for creative problem-solving that helps borrowers reach the finish line,” Urrego said. “No matter the challenge, we have the experience and knowledge necessary to understand every borrower’s unique circumstances and build solutions that get them to their goals.”
Since its founding in 1987, Kennedy Funding has built a reputation for closing deals that other lenders are unable to close or are unwilling to touch. Leveraging the merits of the deal itself, the Kennedy Funding team looks for reasons to say yes to borrowers.
“Kennedy is a great organization with a lot of integrity,” Zhang said. “Edwin and Kevin make a strong team.”
With an estimated current population of just under 10,000, Edgewood is part of the larger South Sound region, which is located just by the Puget Sound waterway. Residents are drawn to the city’s small-town feel and proximity to the greater Seattle–Tacoma area.
“Edgewood sits just east of Tacoma, the third-biggest city in Washington State, and quite close to the tech and cultural capital of Seattle,” Wolfer said. “This makes housing and retail a good use of property, where both the population and employment opportunities are growing.”
About Kennedy Funding
Kennedy Funding is a global direct private lender specializing in bridge loans for commercial property and land acquisition, development, workouts, bankruptcies, and foreclosures. Kennedy Funding has closed more than $3 billion in loans to date. Their creative financing expertise provides funding up to 75% loan-to-value, from $1 million ($3 million international) to more than $50 million in as little as five days. The company has closed loans throughout the United States, the Caribbean, Europe, Canada, and Central and South America. For information, visit www.kennedyfunding.com.
SOURCE Kennedy Funding
