Aries Capital Arranges Two Loans for Chicago Multifamily PropertiesMay 12, 2015
Aries Capital has completed two loans on behalf of the purchasers of two Chicago multifamily properties. Fannie Mae was the investor in both transactions.
In the first transaction, Aries Capital arranged a $1,810,000 loan for a 12-unit apartment building located at 857-859 N. Hoyne in Chicago’s Ukrainian Village neighborhood. The apartment complex features a mix of one and two bedroom units. Aries was able to secure a 10-year, fixed-rate, non-recourse loan that represented 100% of the total rehab cost with only 60 days of stabilized collections. The loan features a 30-year amortization, 75% loan-to-value ratio and was closed through Aries Capital’s Small Balance Multifamily Program.
Aries Capital arranged an additional $860,000 loan for the same borrower through the Small Balance Multifamily Program. Also situated in Ukrainian Village, this apartment property features six units and is located at 845 N. Leavitt in Chicago. Aries Capital was able to secure a 10-year, fixed rate, non-recourse loan featuring a 30-year amortization and a 75% loan-to-value ratio. As in the previous transaction, the loan represented 100% of the total rehab cost and was secured with only 60 days of stabilized collections.
Upon purchase of the properties, Maven Real Estate Partners waited for the existing tenant leases to expire to begin an extensive renovation of the properties. Once the rehab was completed, the apartments were returned to market and fully leased at a higher rental rate thereby effectively creating substantial value in the property. Based on the increased property values, the stability of the borrowers and the quality of the properties and tenants, Aries was able to deliver a loan that returned 100% of the borrower’s rehab costs with agreeable terms through our Small Balance Loan Program.
Aries Capital closed both loans under the Aries Capital Small Balance Multifamily Program. Through this program, clients with properties under $5 million gain financing benefits normally reserved for larger loans. These benefits include non-recourse debt, loan-to-value ratios up to 80%, and fixed interest rates for longer terms — 5, 7, 10, 15 and 30 years. Additionally, the total cost for third party and legal fees is capped at $4,500 in most markets.
“These loans represent our second and third experiences with Aries Capital,” said Justin Greer, principal of Maven Real Estate Partners. “Aries is extremely knowledgeable about the underwriting process and walked us through each step of the process clearly and effectively. Aries was again able to provide two favorable loans for us and we look forward to working with them on a fourth loan coming down the pipeline later this year.”