Chicago—Aries Capital recently announced the formation of Aries Multifamily, a new operating division of the firm that will provide loans under $5 million for apartment properties across the nation. The new division will be led by Ryan Welsh, a commercial real estate executive with more than 10 years of experience incorporating commercial and multifamily underwriting, loan origination, portfolio management and loan sales.
Aries Multifamily will primarily fund its loans through various Fannie Mae, FHA and small bank lenders. It offers non-recourse loans with five and ten-year fixed rates below 6 percent, typically with loan balances below $5 million. Aries Multifamily utilizes Fannie Mae’s small balance loan programs, allowing them to reduce application fees to a quarter of the cost of most traditional Fannie Mae loans.
“Most of the lenders that had previously financed many of the country’s smaller apartment buildings have either disappeared or are no longer actively making new loans, making it challenging for property owners to find a lender that is willing to provide financing for acquisitions,” says Welsh. “And that is where Aries Multifamily comes in—we will provide owners of well-occupied apartment buildings with the best financing options available in this challenging financial environment.”
Aries Multifamily recently closed $7.7 million in loans in Seattle and Houma, Louisiana.