June 13, 2012
CHICAGO – Aries Capital 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 the Aries originator. “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 in the past, suggested the Borrower contact the firm for assistance in finding more compelling alternative capital sources.
“Once we connected with Aries everything flowed very smoothly,” said Mary Schwartz, property manager for the borrower. “Aries was diligent in providing us the information we needed to accomplish this transaction efficiently and effectively.”
The deal presented several challenges outside standard underwriting guidelines, but Aries proactively addressed these issues at the onset with the lender with whom the firm 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,” said the Aries originator.