Aries Capital Secures Financing for Two Milwaukee Area Multifamily Properties, Saves Developer Quarter Million Dollars AnnuallyJune 13, 2012
CHICAGO – Aries Capital is pleased to announce that Eric Jones, vice president, from the firm’s Chicago office has completed a loan for two multifamily properties in the Milwaukee area totaling $9.28 million.
Owned and operated by the same developer, the two apartment properties located outside Milwaukee total 152-units. Aries Capital creatively crossed the two properties by utilizing cash-out from one property to cover a shortfall on the other. The team then aggressively pursued several diverse capital sources to provide the financing required to close the deal. Aries’ creativity and trusted reputation enabled the team to secure a loan and close the transaction within 45 days, resulting in a loan that will save the borrower approximately a quarter million annually.
“Often times, owners and developers in tertiary markets are under the impression that their local banks are the only, or best source for financing,” said Jones. “However banks are merely one resource. With a willingness to aggressively pursue creative approaches and a network of reliable sources, Aries Capital can provide access to a diverse range of capital providers, and often at much better rates and terms than those offered by local banks.”
While the Borrower’s loans with a local bank did not mature until 2032, the bank was not willing to provide a rate or a fixed term that was acceptable to the Borrower to keep his business. A local friend of the Borrower’s property manager, who had had positive dealings with Aries Capital’s Eric Jones in the past, suggested the Borrower contact Aries Capital for assistance in finding more compelling alternative capital sources.
“Eric Jones was instrumental in completing this project in a timely fashion. Once we connected with Eric everything flowed very smoothly,” said Mary Schwartz, property manager for the borrower. “Eric was diligent in providing us the information we needed to accomplish this transaction efficiently and effectively. It was a pleasure to work with him.”
The deal presented several challenges outside standard underwriting guidelines, but Jones proactively addressed these issues at the onset with the lender with whom Aries has a long-term relationship. As a result, the issues were addressed and approved by credit before a deposit was required to begin underwriting and order third parties.
“The developer, Dr. K.C. Ho, who built this beautiful and environmentally friendly apartment complex, and Manager Mary Schwartz who operates them in an extremely efficient, flawless and friendly fashion, were great to work with and contributed to the success of this refinance,” added Jones.