Formed in 2006, Aries Real Estate Fund, LLC (AREF) and its predecessors have provided over $40 million in direct funding. AREF is an affiliate of Aries Capital, LLC, whose principals have extensive experience in identifying, underwriting, closing, and servicing quality real estate transactions, as well as the development, ownership, and management of income producing properties. All of AREF’s loans are serviced by Aries Capital, LLC. Like Aries Capital, AREF was founded and is controlled by Neil D. Freeman.
Aries Real Estate Fund, LLC (AREF) offers accredited investors (as defined by the Securities Act of 1993) the opportunity to participate in advancing funds to a portfolio of high-yielding real estate notes.
The Aries Real Estate Fund objective is to make quality real estate loans based on the principals’ extensive experience in real estate lending. The criteria used include (but are not limited to)
- Loan-to-value
- Qualify of Location
- Financial strength and character of guarantors
- Borrower’s plans for the property
AREF projects growth to approximately $50 Million in assets by late 2008, focusing on asset quality rather than fund growth.
Investor Preferred Return on Membership Interests:
Investors receive a market rate annual interest rate preference.
Collateral:
Loans are secured by first or second mortgage positions on real property, or pledges of ownership interests in borrowing entity.
Guaranties:
Full recourse – personal guarantees.
Fund Manager:
AREF is managed by its principals, Managing Director Neil D. Freeman and Chief Financial Officer Andrea Riegsecker.
Management Fee:
AREF is charged an annual asset management fee.
Loan Amounts:
$500,000 to $5,000,000. Loans outside this range considered on a case-by-case basis.
Property Types:
Multifamily, retail, office, hotel, and industrial. Other property types may be approved on a case-by-case basis.
Loan Terms:
Flexible. Six months to 36 months.
Interest Rate:
Transactions are priced based on risk level related to loan leverage, quality of real estate, and borrower strength.
Collateral Required:
Recorded first or second mortgage position or pledge/assignment of partnership interests.
Application Fee:
$5,000, at Application, non-refundable.
Good Faith Deposit:
$5,000, at Application; used to cover underwriting costs and legal. Credited to borrower at closing.
Financing Fees:
Determined on a case-by-case basis; minimum $15,000.
Recourse:
Personal guaranty required.
Lockout:
Pre-payable any time, subject to a minimum interest payment.
