New Jersey-based direct private lender Kennedy Funding has closed a $2.05 million land loan to The Beach Dallas LLC, ensuring that much-needed new housing is set to move forward in the rapidly expanding Dallas, Texas metropolitan area.
The loan facilitates the acquisition of a 62.696-acre parcel of raw land located at 2700 Simpson Stuart Road in Dallas. The borrower, Christian Toxboe, is under contract to acquire the property for $3 million. Kennedy Funding structured the deal to permit the seller to hold a $1.095 million second mortgage behind its loan.
Stepping in after lender failure
The closing was particularly critical for the borrower, as it followed a frustrating three-year period under contract during which their initial lender unexpectedly failed.
“We went through the entire process—completed all the documentation, performed due diligence. All of a sudden, our lender closed their office and their phones were shut off. They were out of business,” Toxboe said.
Kennedy Funding, which was referred to the borrower by a broker, is known for its ability to close loans quickly and on time.
Edwin Urrego, executive loan officer at Kennedy Funding, noted that the situation highlights the risk borrowers face. “What happened to Christian could have happened to anyone, and it illustrates just how often we see borrowers up against the clock because other lenders can’t close on time,” he said. “That’s why choosing the right lender is often the difference between success and failure.”
Focusing on project potential
Urrego added that private lenders like Kennedy Funding can close land loans quickly for virtually any purpose—including acquisition and development—even when a borrower’s credit history might deter traditional banks.
“We’re not scrutinizing your credit history when we evaluate the current opportunity that’s on the table,” Urrego explained. “Our process is about lending based on the project’s potential.”
This same logic led Kennedy Funding to proceed with the deal despite Dallas’s reputation for having a lengthy and strict permitting process.
The project is well-timed to meet surging demand. “Nearly 178,000 people moved to Dallas between July 2023 and July 2024. They all need a place to live, which makes projects like this one spearheaded by The Beach Dallas highly lucrative,” Urrego said.
The land is located in South Dallas, an area well-served by major regional highways, including Interstate 20, providing future residents with easy access to downtown Dallas and Dallas Fort Worth International Airport. The area is also close to University of North Texas – Dallas and Paul Quinn College, positioning the development near a highly skilled workforce desirable to companies relocating to the Dallas-Fort Worth area.
Kevin Wolfer, CEO and President of Kennedy Funding, remarked, “Half of the fastest-growing cities in the U.S. are in Texas, presenting an incredible opportunity for borrowers like The Beach Dallas to invest in their communities.”
This deal marks the second Dallas-area loan the direct private lending firm has closed this year.
