Aries Closes $2.76 Million Loan for Purchasers of Logan Square Apartments

February 17, 2014

Spaulding Apartments Aries Capital Logan SquareAries Capital has completed a $2,762,500 loan for the purchasers of a 37-unit apartment complex in Chicago’s Logan Square neighborhood. Fannie Mae was the investor in the transaction.

The apartment complex, located at 1944 N. Spaulding, is a courtyard building including a mix of one to four bedroom units and is located within the popular Logan Square neighborhood on Chicago’s Northwest Side. The 10-year, non-recourse loan arranged by Aries Capital featured a 30-year amortization and was closed through Aries Capital’s Small Balance Multifamily Program, which offers benefits normally reserved for larger loan amounts and caps third party and legal fees.

The property had expiring agreements with three different subsidy providers, which provided several existing tenants with rent assistance.  While these agreements offered significant upside in rent increases due to the fact that they were expiring, they also made underwriting the transaction more challenging because each provider used a completely different method of reporting.

Because Aries was familiar with the underwriter’s requirements and process, the firm was able to successfully consolidate the various leases, vouchers, income statements and paperwork to the lender’s specifications, ultimately securing the necessary financing.

The borrower has broad experience in the multifamily industry. They have completed the development of more than 1,250 residential units, and currently own and operate several properties in Chicago.

“Aries really understood how the underwriter was looking at the income streams, and ultimately helped walk the project through underwriting.” said Justin Greer, Principal of Maven Real Estate Partners. “This is a great asset near the 606 trail, and our ability to secure 10-year, non-recourse debt at a favorable interest rate was a real bonus for us. We look forward to working with Eric again soon.”

About Aries Capital’s Small Balance Multifamily Program

Aries Capital closed this loan 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.

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© Aries Capital, LLC 2022

© Aries Capital, LLC 2022