Chesapeake City, MD & Old Westbury, New York — Current challenges in the lending market make closing a deal more difficult than typically expected. But for Kennedy Funding, December 2023 brought several successful closings, including a $5.1 million loan for the acquisition of a 2.5-story, 12,750 s/f single-family home. The property is part of a 437-acre winery in Chesapeake City.
Notably, Kennedy Funding closed the loan in eight business days, when traditional lending can take weeks or months to close. The loan commitment was executed on December 14, 2023, and closed on December 27, 2023, in the midst of the peak holiday season, a period when obtaining real estate financing typically takes longer, especially from traditional funding sources.
This was the third loan Kennedy Funding closed in the last week of December.
“You need to anticipate challenges and delays during the holiday season, and you need to know how to navigate them while still meeting the borrower’s needs in a timely fashion,” said Kevin Wolfer, president/CEO of Kennedy Funding. “At Kennedy Funding, we have the experience and know-how to assess potential deals on next-toimpossible timelines and get funding in the hands of borrowers at any time of the year.”
The borrower, AE Bohemia Manor Farm, LLC, will use the proceeds toward its $8.9 million purchase of the property. AE Bohemia Manor Farm intends to maintain the current operations of Chateau Bu-De Winery & Vineyard, along with its five catering establishments and bed-and-breakfast, in collaboration with VIVÂMEE Hospitality, which manages three other luxury resorts.
The winery includes a 15,000 s/f building with a tasting room, a ballroom, entertainment spaces, and a full catering kitchen with food served on-site. Chateau Bu-De Winery & Vineyard hosts 30,000 visitors per year, with just under 60,000 vines of Pinot Noir, Chardonnay, and other widely sought-after wines. Weddings and events at the winery are booked well into 2024.
Wolfer said that Kennedy Funding evaluates its lending prospects largely on their value to the surrounding community, and the winery’s popularity was a clear sign of that value.
“Direct private lenders like us are free to examine the merits of a deal, without being forced to tick certain boxes or meet potentially irrelevant criteria,” Wolfer said.
“Between Chateau Bu-De Winery & Vineyard’s gorgeous waterfront scenery, stunning bed-and-breakfast space, state-of-the-art vineyard, catering, and event spaces, we were fully confident that the borrower’s purchase would elevate the Chesapeake City community.”
“Between Chesapeake City’s geographical proximity to major cities and Chateau BuDe Winery & Vineyard’s historic ties to its hometown, it’s clear to see that this site will continue to be a destination for wine lovers, events, and weddings,” Wolfer said. “We are proud to have closed this loan, especially during the holiday when it can be harder to get deals done. Our ongoing mission is to continue to support our clients who aspire toward a prosperous future with their real estate ventures.
In a second transaction, Kennedy Funding closed a $5 million loan on a residential estate in affluent Old Westbury, NY.
The loan proceeds will be used for working capital. There is no debt on the property.
Despite numerous setbacks and challenges, Kennedy was able to fill the funding void, providing the necessary capital.
The loan was brokered by Hong Hu of Googain, Inc., and Nicole Cayton of KR Capital. For Kennedy, the transaction best demonstrates its commitment to providing funding, especially in these uncertain times, when conventional lending has all but dried-up.
“The borrower needed to close by the end of the year, and we were able to perform our due diligence and deliver in a timely fashion,” said Wolfer.
“Despite the fact that there was no debt on the property, the journey to the closing table can often be lengthy, especially when there is a bank or conventional lender involved,” Wolfer added.