Aries Capital Secures Refinancing for Fractured Condo/Apartment Complex Portfolio in Naperville, IllinoisJanuary 14, 2013
Aries Capital is pleased to announce that Senior Vice President Jeff Bucaro, from the firm’s Chicago office, has completed an $8.8 million first mortgage on behalf of Marquette Real Estate Investments for a fractured ownership in a multifamily property in Naperville, Illinois.
The Ponds of Naperville was originally purchased as an apartment complex by Marquette in 2000. The highly regarded owner/operator upgraded the property and units and ran the property as an apartment community for about 7 years, and then began to sell the apartments as condominiums. When the housing bubble burst in 2008, 111 units scattered across the 216-unit property remained unsold and Marquette Management chose to rent the remaining converted condos. When the market improved, despite Marquette Management’s pristine reputation in the industry and consistently high-performing property portfolio, the firm was unable to find a lender who was comfortable with this type of collateral. Left with only high-interest rate options, Marquette sought Aries Capital’s assistance.
“In spite of the fact that every lender in the country is seeking high-quality multi-family loans, there is almost no appetite from conventional lenders for this type of collateral structure,” said Bucaro. “We were able to bring a portfolio lender to the table and got them very comfortable with the high-quality sponsorship, consistent cash flows, and the exit for the loan.”
Aries successfully secured a lender who extended $8.8 Million at 75% LTV as the first mortgage on the non-contiguous units, and also allowed a recorded second mortgage at 80% LTV, along with additional mezzanine debt beyond the 80%. The deal structure included the flexibility of no prepayment penalty, ensuring that the Borrower may sell and release individual units or prepay or refinance the entire loan, without penalty. The first mortgage loan features a 4.25% rate, a four-year term with extension options and a 30-year amortization.
“Aries Capital is a very talented mortgage banking group, with a reputation for finding solutions to challenging financing situations, and the creative know-how to get things done,” said Nick Ryan, the Managing Partner of Marquette Companies.
The Ponds of Naperville is located at the corner of 75th Street and Modaff Road in Naperville, Illinois. The property is minutes from the expressways as well as downtown Naperville. Units feature one and two bedroom options, and amenities include a swimming pool, fitness center and 24-hour emergency maintenance. Marquette Management is known throughout Illinois, Texas, Kansas, Michigan and Colorado for its pet friendly, boutique apartments and its commitment to customer service through its WE C.A.T.E.R. , Community Life and Smart Rent systems. Marquette Management is a highly regarded multifamily owner/operator headquartered in the Chicago area which operates approximately 10,000 apartment units.