4A — May 29 - June 11, 2020 — M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal
NGLEWOODCLIFFS, NJ — Securing fund- ing for international Deep knowledge of Brazilianmarket establishes NJ-based firm as go-to lender for the region Kennedy Funding closes $2.633 million land loan for residential development in Brazil E so far.
Urbamais, a condominium community located in Feira de Santana, a city in eastern Brazil. Recanto das Flores Urbamais is a residential development situated on 416.54 acres in the city’s Nova Esperança neigh- borhood, located in the city’s residential Peripheral Region. The community is made up of 250 low-income condominiums, and the borrowers plan to de- velop an additional 75 homes on an undeveloped tract as part of a plan to expand the new community. Approximately 70% of units have been sold
“It’s virtually unheard of to close a land loan abroad, let alone one in a region as com- plicated and fragile as Brazil,” said Kevin Wolfer , CEO and president, Kennedy Funding. “It may have appeared on paper that we had all factors working against us, but thanks to our experience in South America’s real estate market, we were able to close and get the borrower the funding nec- essary to start construction.” “Conventional lenders only look at liquid assets whenmak- ing a loan, but we look beyond the current value of the land," Wolfer said. “We can review the borrower’s plans and follow a property’s trajectory from raw land to a fully built and suc- cessful development.” As the second-most populous city in one of Brazil’s largest states, Bahia, Feira de Santana has a bustling economy and a growing population. The city has the third-largest GDP in the state and is home to many businesses and unique festivals that bring tourists to the city year-round. “Bahia is growing in both population and economy, and is home to nearly 15 million people and some of the larg- est agricultural producers in cattle, sheep, cocoa, coconuts, and other crops and animals,” Wolfer said. “Low-income hous- ing is a necessity as Feira de Santana, one of the biggest cities in the region, continues to grow and prosper.” According to Wolfer, Ken- nedy Funding was singled out by the borrower’s broker, João Costa, president of Savel Capi- tal Partners, Lisbon, Portugal, who searched for a U.S. lender that understood the complica- tions and intricacies of working within Brazil’s legal, economic, and political intricacies. “A lender without our knowl- edge and experience in the region simply would not have been able to close,” Wolfer said. “When it comes time to borrow for international projects, it’s important to go directly to the experts.” “Kennedy Funding knows how to navigate the Brazilian government’s requirements, the local laws, and the red tape, especially through the current challenging political environment,” said Costa. “This knowledge was vital to sealing the deal, and Kennedy Funding delivered in full.”
projects is already dif- f i c u l t f o r borrowers, bu t b r i ng an ongoing global pan- demic and a challenging geopolitical
Kevin Wolfer Recanto das Flores Urbamais is a residential development situated on 416.54 acres.
situation into the mix, and the prospect seems all but impos- sible. Not so for direct private lend- er Kennedy Funding . The
Englewood Cliffs, New Jersey- based lender announced that it has closed a $2.633 million loan to BRMF LLC of Brazil.
Proceeds of the loan will be used for working capital to- ward the last phase of devel- opment for Recanto das Flores
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