Friday, August 27, 2010

CHICAGO – Aries Capital is pleased to announce that its affiliate successfully concluded a $3.2 million venture organizing the completion and sale of all units within The Atwood Condominiums of Chicago. As a result of the project’s success, Aries Capital has also launched a new division of the firm – Aries Asset Management Services.

Located just east of Clark Street in the trendy Andersonville neighborhood of Chicago, The Atwood Condominiums is a 12-unit development. The Atwood project began in November 2009, when the firm accepted a deed-in-lieu of foreclosure on the vacant property.

Aries Capital Chairman and CEO Neil Freeman recognized the challenges the Lender faced as an opportunity for the affiliate to provide project management and additional capital for completion of the development. As project manager, the affiliate negotiated new financing to complete the condo development, re-permitted and re-drew the project and secured approvals from the City of Chicago and the local Alderman. The affiliate then secured the site and hired an outsourced construction and marketing team to successfully complete the project.

“The Lender held a $1.8 million note on the unfinished property and required additional funding to correct and complete the renovation, a headache for an entity that specializes in financial services,” noted Freeman. “However, through the affiliate’s assistance, the development was successfully completed, amenities were upgraded from the original plans, the lender was paid in full including accrued interest, and FHA financing was secured enabling buyers to purchase units for only 3.5% down.”

Liz LaTour of Keller Williams brokered the sales of the renovated one- and two-bedroom units which were successfully sold within five months of the completion of construction. Attorney David Chaiken of Canmann & Chaiken provided counsel in closing the 12 units. Kalamper Construction served as the general contractor for the project.

The affiliate’s ability to adapt and be decisive in turbulent times transformed a distressed property into a profitable enterprise, and as a result has inspired the launch of Aries Asset Management Services. Aries Asset Management Services, a division of Aries Capital, will offer distressed property solutions and services to qualified lenders and borrowers. The firm will address a niche created by widespread defaults in the commercial real estate lending market, as was the case with The Atwood Condominiums.
“In this market, many lenders have become landlords by default,” said Freeman. He added, “The Atwood Condominiums project, though successful, represented an unconventional arrangement for the affiliate, which typically provides mezzanine loans of $500,000 to $5,000,000 on quality commercial real estate, not distressed properties, but volatile times demand dynamic change and Aries Asset Management Services will address this growing need in our marketplace.”