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Georgia Developer Receives $55 Million Loan From Kennedy Funding
By James Comtois
To help an affiliate of YJR Realty LLC develop a waterfront property in Georgia, Kennedy Funding has granted the developer a $55 million loan.
When completed, the project will be a large-scale waterfront resort and community, containing hundreds of residential units. There will be high-density, single-family homes in a town center setting and retail businesses along a central boulevard. Several mid- and high-rise condominium buildings along the perimeters will total several hundred one-, two- and three-bedroom units.
The project, which had been self-funded, needed extra funding to increase development speed and maintain its schedule. Kennedy Funding offered the developers the loan after they unsuccessfully attempted to arrange financing through a small bank.
Details of the loan, as well as of the affiliate or the town in which the project is located, have not been disclosed.
"More and more, we see traditional lenders pulling out of the residential market, for one reason or another. And even in a case like this one, they can't seem to see the vision in the plan," said Jeffrey Wolfer, president and co-CEO of Kennedy Funding, in a statement. "We, on the other hand, always consider a loan on its own merits. We don't try and squeeze it into a list of rules, regulations, or requirements, as do conventional lenders. If the loan appears viable and our due diligence confirms it, we'll find a way to make the loan work.
"In this case, the project was already in development, the city was fully behind it and its future was assured. So we had no problem accepting part of the undeveloped land as collateral and making them the loan that the banks couldn't or wouldn't."
Additionally, the community will feature a lifestyle center with a clubhouse, themed pool area, tennis center, a condo hotel, restaurants and shops. A private boardwalk will run along the waterfront and owners will be granted membership to a nearby golf club.
The development will also have private beach clubs, a fitness center and spa, and boast one of the few new deep-water marinas to be permitted on the Atlantic Coast in recent history. Plans call for hundreds of wet slips as well as dry slips and many lots have views of the water.
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