“Hedge funds usually trade stocks and bonds and sometimes buy loan participations, but private credit firms like Kennedy Lewis actually make and structure loans,” he said. “They often work with borrowers or projects that need financing a regular bank can’t easily provide. Banks focus on safer loans because they have to protect their depositors. Private credit funds don’t take deposits, so they can assume a bit more risk and structure deals more flexibly.”
Land transfer records show Kennedy Lewis Capital Partners has also been buying lots in Eastwood Homes developments in North Carolina.
According to records published by The Wilson Times, Eastwood Homes of Raleigh LLC sold 43 lots in its 1158 Place subdivision in Wilson County for $3 million, also to Kennedy Lewis Capital Partners Master Fund IV C LP, in late September. Records from Alamance County, North Carolina, for September show an additional sale of more than 40 lots in the 205-home Wexford development in the town of Elon from Eastwood Construction Partners LLC to the same buyer, though the records don’t list a sale price.
Eastwood announced in March it had acquired Mallory Pointe’s original developer, Virginia Beach-based Napolitano Homes. MCSF LLC, Napolitano’s holding company for the 500-acre Mallory Scott Farm on which Mallory Pointe is being built, still owns land in phase I as well as the undeveloped future phases, according to Isle of Wight County deed records.
Napolitano Homes Senior Vice President John Napolitano, who did not immediately respond to the Times’ request for comments on the recent purchase of lots by Kennedy Lewis, previously told the Times that MCSF LLC still owns all of Mallory Pointe and is a joint venture with Eastwood, Stanley Martin Homes LLC and other partners. Stanley Martin also owns several lots in Phase I. Eastwood Homes and Kennedy Lewis also did not immediately respond to the Times’ request for comments.
Mallory Pointe broke ground in 2023, two years after a contentious 5-2 Town Council vote on its rezoning application. Homes are now under construction. According to Eastwood’s website for Mallory Pointe, there are 10 floor plans for three- to five-bedroom homes starting at $549,990.