Aries Capital Arranges $2.275 Million Loan for Chicago Multifamily Property
CHICAGO — Aries Capital is pleased to announce that Vice President Eric Jones, from the firm’s Chicago office, has closed a $2.275 million Fannie Mae loan for a 9-unit multifamily building in the River West neighborhood of Chicago. The building had only two months of operating history at the time of closing.
This is the third loan that Jones has arranged in the last six months for the Borrowers, Douglas Crocker II and Matt McHugh, active buyers in the Chicago multifamily market. Crocker is the former president/CEO/vice chairman of Equity Residential properties, which owns and operates over 225,000 apartment units nationwide. McHugh is the managing member of the Affito group, which owns and manages multiple properties in Chicago. Crocker and McHugh bought the recently completed property with cash last year and immediately engaged Aries Capital to place debt on the property. The 10-year, non-recourse Fannie Mae loan features a 4.13% interest rate with 30 year amortization.
The condominium-quality building, located at 693 North Peoria Avenue, was completed and fully leased in December of 2012, and had just one month of operating history when Jones took the deal to market. “Due to the strength of the borrower, the building quality, and the location, we were able to lock a rate on the loan with one month’s operating history and secure it with two month’s history,” said Jones.
“Aries Capital has been a great asset to our acquisition strategy. They understand the market and the lending landscape, so they were able to find us great terms and execute quickly. We’ve been very impressed,” said McHugh.
Aries Capital is also creating a custom financing program to aid the Borrower with future acquisitions and refinancing. “The borrowers are very active buyers. We are now working with them on setting up a bridge program which will allow them to take down properties that may need some rehab or a little more operating history at increased rents before we place long-term, fixed rate, non-recourse debt on them,” said Jones.