Kennedy Funding, an Englewood-based direct private lender, announced on Thursday the closing of a $4.4 million cash-out refinance loan for a residential development site in Spicewood, Texas.
The deal highlights the firm’s continued expansion into high-growth corridors like the Austin metropolitan area, where traditional lenders often hesitate to provide liquidity for raw land assets.
The loan proceeds will be used for a cash-out refinance on a 38.81-acre site comprising six adjoining parcels. The borrower, who acquired the land between 2021 and 2022 for roughly $7.97 million, has already invested an additional $2 million in utility infrastructure and site preparation.
Located at 3550 Alexander Circle and 3310 Crawford Road, the property features the rolling terrain and panoramic views of Lake Travis that have made the Texas Hill Country a magnet for luxury residential development.
“This deal is exactly where we add value,” Edwin Urrego, Kennedy Funding’s Executive Loan Officer, who led the transaction, said. “This was a cash-out refinance on land that’s already been improved. The focus was getting the borrower liquidity while keeping the project moving forward.”
Financing for raw land is notoriously difficult to secure through conventional banks. Traditional institutions typically avoid these deals because the properties do not yet generate income and carry significant development risks.
Kennedy Funding, however, specializes in “asset-based” lending, focusing on the intrinsic value of the land and the borrower’s equity. With no current zoning requirements on the Spicewood site, the land offers a rare level of flexibility for future development—an advantage the Englewood firm was able to leverage during underwriting.
“The owner had already built meaningful value in the site and needed a way to access that capital efficiently,” Kevin Wolfer, CEO and president of Kennedy Funding said. “We structured the financing around the asset itself, giving them the flexibility to move ahead without disruption.”
Spicewood has emerged as a high-demand submarket for national homebuilders seeking inventory near Austin. The subject property is already equipped with utilities and benefits from existing road access, making it prime for immediate residential expansion as the Austin metro continues its outward sprawl.
