Direct private lender Kennedy Funding has successfully closed a challenging $3 million cash-out refinance loan for a cold storage facility currently under construction in Lynden, Washington, paving the way for the project’s completion.
The Englewood-based firm’s ability to navigate a complex set of obstacles allowed the foreign national borrower to secure funding where traditional lenders failed. The loan proceeds will be used to pay off existing debt on the 188,200-square-foot facility, which is set to service the agricultural sector in the semi-rural town near the Canadian border.
According to Steve Rogovich, senior loan officer at Kennedy Funding, the deal presented multiple complications that made it “untouchable” for banks.
“Nobody except Kennedy Funding could do this loan,” Greg Satterfield said. Satterfield is broker on the deal and partner with Crux Commercial Partners, highlighting Kennedy’s flexibility in granting extensions and raising the loan-to-value (LTV) ratio.
The challenges included:
- Foreign National Borrower: Traditional lenders automatically regard foreign nationals (the borrower is from China) as higher risk and logistically complex.
- Land Loan Classification: The deal was classified as a land loan, which is typically a “non-starter” for banks.
- Encumbrances: The property had a mechanic’s lien against it, compounded by existing partnership issues.
Rogovich credited the firm’s decades of experience in closing nontraditional loans for their ability to meet the moment.
“When you’ve been working in this industry for as long as I have, you see every kind of opportunity come through the door,” Rogovich said, emphasizing that intricate and challenging deals are the firm’s specialty.
Kennedy Funding CEO Kevin Wolfer underscored this reputation: “Brokers and potential borrowers from all over the world know our track record, and most importantly, know to call us when it feels like the task is impossible to meet.”
The 18.47-acre industrial site at 675 Redwood Road is now set to host the substantial cold storage facility. Lynden is focusing on its agricultural roots for future growth, making the facility a key asset.
Rogovich concluded, “Agricultural businesses will be well serviced by a cold storage facility. Alliance USA is coming in at the right place, at the right time, to capitalize on the region’s ongoing growth.”
