Kennedy Funding Completes $3.65 Million Land Loan in Lima, Peru
Englewood based Kennedy Funding announced on Thursday that it had struck another overseas deal, this time in Lima, Peru.
The private direct lender helped Concreto Design Studio SAC secure a $3.65 million land loan that will be used to finance the construction of a 22-story apartment building on 27 acres of gross land in the city.
Securing loans outside the U.S., especially land loans, can be difficult — but Kennedy Funding has both the track record and the extensive overseas relationships to fund with successful transactions in South America.
“Doing business in Peru and other countries outside of the United States requires working with an experienced lender who understands the political landscape, the real estate market, and the law as it relates to real estate transactions,” said Wolfer. “Only these experts know how to comply with the maze of local laws and documents that come with real estate, environmental, land use and title.”
Wolfer added that the transaction can become more complicated once land is involved, as raw land is inherently considered risky by most lenders.
“Accurate valuations outside of the United States are especially critical to making the right choice,” Wolfer added. “We work with large, respected global real estate companies like CBRE, Colliers, Newmark and other on-site experts to properly appraise the property, so that we can provide the largest loans possible to our borrowers.”
Francisco Piera, President of Alpha loans and investmentsthe Miami-based consultancy which represented the Argentinian borrower, said the developer had been seeking funding for years.
“They had 3-4 offers from other lenders, but I knew only Kennedy could close,” Piera added. “These other lenders also had higher rates than Kennedy. A Kennedy loan is much cheaper and less headache than having a partner.
Lima is one of the most populous cities in the Americas and is the political, financial and cultural center of Peru. It sits directly on the Pacific Ocean, in the desert zone that includes much of the western coast of South America. Its population of over 11 million has grown in recent years, forging demand for housing.
This loan closing follows a previous closing by Kennedy Funding of a $2.5 million loan for use in a mountain town in the interior of Peru. The company has earned an international reputation for closing loans that other US-based institutions often don’t consider at all. The company has deals in Brazil, Colombia, Belize, Bahamas, Cozumel, Jamaica, St. Barts, and the Dominican Republic, among other international locations.
“We are proud to have concluded another loan in Peru,” said Wolfer. “We get loan requests from all over South America, and we are one of the few lenders who can close them. We will always continue to fill that gap in the market.”