Aries Capital Closes $38.65 Million for Hotel & Industrial Properties in IL & FLDecember 18, 2018
Neil D. Freeman, Chairman and CEO of Chicago-based Aries Capital, is pleased to announce the firm has completed $38,650,000 in loans on behalf of four clients as 2018 comes to a close.
In the first transaction, Aries Capital arranged a $7.05 million bridge loan for the refinance of the Comfort Inn located at 3010 Finley Road in Downers Grove, Illinois. Freeman originated the transaction on behalf of long-time client SB Yen Management Group who has plans to open San Francisco’s renowned Kingdom of Dumpling on the property. Aries Capital Senior Associate Brandon Perdeck managed the underwriting and closing. The two-year, fixed-rate bridge loan features a 70% loan-to-value ratio and a 30-year amortization. The loan will enable the borrower to build-out the 121-key hotel’s adjacent 21,000 square-foot banquet/retail space for a new restaurant.
Aries Capital also arranged a two-year $17,000,000 floating rate bridge loan for The Eurostars Langford Hotel in downtown Miami, Florida. Aries Capital CEO Neil Freeman originated the loan, Senior Associate Brandon Perdeck provided the underwriting services and Senior Vice President Heather Madsen managed the closing process.
“Part of an ongoing revitalization of downtown Miami, the Langford Hotel’s location in the Central Business District, made this an attractive opportunity for the lender, Thorofare Capital,” said Freeman. “The viability of the hospitality market, the inclusion of an earn-out funded upon cash-flow milestones being hit, and Aries Capital’s strong relationship with the lender made it possible to close the transaction in six days.”
Also located in Miami, Aries Capital completed a $5.4 million loan on behalf of Core 31 Real Estate for the acquisition of a 48,000-square-foot industrial/flex office space located in Little River/Magic City District of Miami. The property is also located in a qualified Opportunity Zone. The seven-year, fixed-rate loan was originated and closed by Aries Capital’s Senior Associate Brandon Perdeck and features a 50% loan-to-value ratio and 25-year amortization.
“Working with the Aries Capital team was seamless,” said John Matthews, President of Core 31. “Everyone was very communicative and worked diligently to ensure our loan was closed according to our acquisition timeline. I look forward to working with Brandon and Neil on future transactions.”
Finally, the firm completed a $9,200,000 loan on behalf of a Palm Beach, Florida-based borrower for the acquisition of two shopping centers anchored by a Jewel-Osco grocery store in Oak Lawn, Illinois.
Freeman originated the transaction and Aries Capital’s Senior Associate Brandon Perdeck served as the underwriter and closer. The 10-year, fixed-rate loan was structured using a new permanent debt financing program through one of Aries Capital’s capital source relationships. The new program delivers the long-term fixed-rate, non-recourse and high-leverage benefits of a secondary market loan with the certainty of a portfolio loan. By retaining the loan on its books, the lender removes the risk of a b-piece buyer kicking the loan out of the securitization pool late in the transaction and can also remain the servicer for the life of the loan.
The financing was structured with a 30-year amortization and at a 65.5% loan-to-value ratio. The properties total 138,000 square feet and are anchored by a 64,684-square-foot Jewel-Osco grocery store.