It took the vision, resources and creative expertise for Kennedy Funding Financial, LLC (KFF) to help a $16 million retirement project get off the ground.
Kennedy Funding Financial has completed a $7.38 million construction loan for a proposed independent living community in Lakeshore, Ontario, Canada, announced Gregg Wolfer, COO of the Englewood Cliffs, New Jersey-based direct private lender.
The three-year, interest-only funding was obtained by 4202414 Canada Inc., an affiliate of the community’s developer. The loan will be serviced by KFF or an affiliate.
Of the $7.38 million, a portion of the loan proceeds will be held back at closing and advanced when certain completion reserve conditions are met, according to Wolfer. Those conditions include final approval of all necessary construction permits and a completion bond.
As proposed, the four-story Stoneypoint Retirement Home will consist of a total of 126 studio suites, one-bedroom suites, and assisted living units on three floors with a gross floor area of nearly 122,000 s/f, atop 65 parking stalls.
The 5.7-acre property, zoned for residential use, is situated 31 miles east of Windsor, Ontario. The total expected build-out is $15.99 million.
“While it is unusual for our firm to do construction loans outside the U.S., this opportunity made sense because it is located in a market that is considered to be underserved,” said Wolfer.
“With an aging population, the forecast for senior residential occupancy is expected to remain strong over the mid- to long-term. Newly constructed facilities in neighboring communities continue to report rapid lease-ups.
“Local planning officials have also indicated that this is the only entitled parcel in the community that is currently approved for a senior residence. The project is a win-win for all including the community which will benefit with significant job growth,” said Wolfer.