Kennedy Funding closed on a $1.575 million cash-out refinancing loan to Davis Ford Venture, LLC.
The borrower plans to use the loan to pay off an existing first mortgage of $867,590 on land located at 5021 Davis Ford Road, Manassas, VA, while the remainder will be used for working capital.
According to Kevin Wolfer, CEO of Kennedy Funding, the arrangement is practically unheard of in financing circles.
“There are virtually no lenders who will look at an applicant who plans to use a cash-out refinance loan on land, let alone fund the deal,” Wolfer said.
“However, Kennedy Funding’s flexibility means that we are willing to read between the lines of a traditional application. We were able to truly assess the merits of this property and see the applicant’s vision.”
Davis Ford Venture, LLC acquired the property, which is divided into two tax lots, in 2002 for $1.4 million. Since its purchase, the borrower has received preliminary approval for a residential subdivision for a community of single-family homes to be named Hoadly Falls.
The second parcel, located across the street from Hoadly Falls, is pre-approved for 15 single-family homes, each on a .56-acre lot. The borrower plans to sell the lots to a national developer.
“The applicant came to us with a concrete plan for the property, as well as a track record of remaining current on their current mortgage payments,” Wolfer said. “With that in mind, we were able to fund the loan.”
