Kennedy Funding, a New Jersey-based direct private lender, recently closed a $2.475 million loan to Colorado real estate developer Ban RE Group. Loan proceeds will be used for debt payoff and working capital on a 180.64-acre tract in Bennett, Colo., according to a press release.

The land is an extension of the Antelope Hills residential development, located 45 minutes east of Denver. The developer plans to construct 149 new single-family homes on this new extension to the property.

“This land loan is helping our borrower refinance and access the capital required to continue investing in the Antelope Hills development,” Kennedy Funding CEO Kevin Wolfer said in the release.

Wolfer said that the borrower faced some challenges working with a conventional lender because of the difficulties connected to lending on land.

“We bring decades of experience in closing difficult and non-traditional loans, including land loans like the one we closed for Ban RE Group,” he added.

Capital Atlantic Solutions (Virginia Beach) Principal Kimmy Humphrey, the broker for this transaction, addressed difficulties with such loans.

“There were lots of challenges and so many moving parts on this loan, particularly when you’re dealing with a land loan,” she said. “Kennedy Funding is one of the only lenders that could get this deal done and closed. They have a way of getting tough deals to the closing table.”

Wolfer said a significant part of closing these types of loans is the ability to see the deal as more than just an application, but to see the potential of the project. The fast-growing metropolitan Denver area, coupled with a hot housing market, means developments like Antelope Hills have excellent potential.

“A town like Bennett is the perfect blend between enjoying the quiet of a suburban area while being right next door to one of the country's most loved cities,” he said. “We believe this development will be a great success.”

Wolfer also noted housing demand has been on the rise in the greater Denver metro area due to the area’s low unemployment rate and a strong local economy.

“Low mortgage rates, new industries, job opportunities, and outdoor recreation have sent the Denver housing market into overdrive,” he added. “Housing prices have increased significantly over the last few years. There is a huge demand for new construction as families move to the area. There’s no better time for Ban RE Group to continue building new homes.”

Kennedy Funding is a global direct private lender specializing in bridge loans for commercial property and land acquisition, development, workouts, bankruptcies, and foreclosures.