Aries Capital Secures Mortgage for Mutifamily Property

CHICAGO – Aries Capital secured an $8.8 million first mortgage on behalf of Marquette Real Estate Investments for a fractured ownership in a multifamily property in Naperville, IL. Jeff Bucaro, Senior Vice President in Aries Chicago office, completed the deal.

   In 2000, Marquette bought The Ponds of Naperville. The firm upgraded the property and ran it as an apartment complex for about seven years and then started to sell the apartments as condominiums.    When the housing bubble burst in 2008, 111 units of the 216-unit property remained unsold and Marquette Management chose to rent the remaining converted condos. After the market improved, Marquette could not find a lender who was comfortable with this type of collateral.    ”In spite of the fact that every lender in the country is seeking high-quality multifamily loans, there is almost no appetite from conventional lenders for this type of collateral structure,” Bucaro says in a press release.    Aries found a lender, who was not identified, who extended $8.8 million at a 75% Loan-To-Value ratio 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 a no prepayment penalty clause. The first mortgage loan features a 4.25% rate, a four-year term with extension options and a 30-year amortization.    The Ponds of Naperville is located at the corner of 75th St. and Modaff Rd., near the expressways and close to the downtown area.    Marquette Management is a multifamily owner/operator headquartered in the Chicago area which operates about 10,000 apartment units.    Aries Capital is a national full service commercial mortgage and real estate investment banking firm with offices in Chicago, Houston, and Phoenix.