U.S.-based direct private lender Kennedy Funding has helped Concreto Design Studio S.A.C. secure a $3.65 million land loan in Lima, the capital of Peru, according to a press release.
"We are proud to have closed another loan in Peru," Kennedy Funding CEO Kevin Wolfer said. "We receive loan requests from all over South America, and we are one of few lenders that can close them. We will always continue to bridge that gap in the marketplace."
The load will be allocated toward the construction of a 22-story apartment building on 27 acres of raw land inside an urban setting.
Lima was selected as the closing location because of its hefty population of 11 million, rising housing demands and coordinates directly on the Pacific Ocean.
"This apartment building is being built in a city full of metropolitan life, in a country rich with history," Wolfer said.
According to Wolfer, the loan is considered a success considering the challenges faced when trying to close a land loan outside the U.S.
“Kennedy Funding has both the track record and the extensive relationships abroad required to successfully fund deals in South America,” a recent press release reads.
"To do business in Peru and in other countries outside the U.S., you need to work with an experienced lender who understands the political landscape, real estate market, and the law as it pertains to real estate deals," Wolfer said. "Only these experts know how to comply with the labyrinth of local laws and paperwork that come with real estate, environmental, land use and title."
He said accurate valuations outside the U.S. are vital.
"We work with large, respected global real estate firms like CBRE, Colliers, Newmark and other on-location experts to properly assess the property, so that we can provide the largest possible loans to our borrowers," Wolfer said.
Francisco Piera, president of Alpha Lending & Investments, the Miami-based advisory firm who represented the Argentinian borrower, confirmed that the developer was seeking funding for several years.
"They had 3-4 offers from other lenders, but I knew only Kennedy could close," Piera said. "Those other lenders had rates higher than Kennedy, too. A loan from Kennedy is a lot cheaper and less headaches than having a partner."
The deal follows a similar closure of a $2.5 million loan for a construction in an inland Porevuian city. The project is one of many the firm has closed in Brazil, Colombia, Belize, Bahamas, Cozumel, Jamaica, St. Barts and the Dominican Republic.