HACKENSACK-- Kennedy Funding, Inc., a direct private lending company, closed four loans on April 16th, three for land development and one for financial restructuring, totaling almost $40 million.
North Carolina’s Legasus Properties LLC borrowed over $30 million for the development of two upscale Smoky Mountain communities. In St. Thomas, US Virgin Islands, Wintdots Development needed $6.5 million to create a vacation community overlooking the Charlotte Amalie harbor and the fourth loan, a $1.5 million restructuring deal went to MOA Properties LLC, a hospitality company with moderately priced accommodations.
Legasus developers Robert A. Corliss and Theodore C. Morlok needed a major loan to build the Tuckasegee neighborhood of River Rock, a community in Cashiers, NC, along the Highland-Cashiers Plateau. As a longtime permanent or vacation home destination for affluent buyers, this area holds promise for success despite the oft-reported housing market downturn.
With wooded hiking trails, a planned entertainment and fitness complex, and accoutrements consistent with high-country living, Tuckasegee will present buyers with scenic settings and desirable lifestyle elements. The $20.5 million loan will pay off existing debt and fund improvements including new roads, footbridges, an entrance feature, utilities, community lodge design, and construction startup for Phase I. The builders offered 677 acres of appropriately zoned land for collateral.
The same team is putting together High Grove Estates on more than 500 acres along mountain ridges in Whittier, 40 miles northwest of River Rock. Thirteen of the 91 lots already have buyers, leaving the remaining 78 lots as collateral. Additional acreage will eventually hold 85 single-family lots. The builders also own an existing 12,000 sq. ft. lodge and cottage and an industrial building along the nearby highway. Corliss and Morlok needed $9.54 million without a long waiting period to refinance present debt and to renovate a community center, complete an overlook pavilion with spectacular views, and finish the entire property’s roads and bridges.
The final transaction for $1.5 million went to MOA Properties LLC to restructure a mid-2007 loan. Since then, the company sold two of the four hotels that served as original collateral. The new loan’s collateral involves a Louisville, KY, Super 8 and a Greenwood, SC, Days Inn. Both under long-term lease agreements and currently undergoing renovations, they are experiencing gradual upturns in income that Kennedy felt warrant substantial appreciation in value. This, and the sell-off of the previous two collateral properties, contributed to the lender’s willingness to participate in MOA’s restructuring.
Kennedy Funding
www.kennedyfunding.com
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