Capital One Multifamily Finance Provides $20.5M Acquisition Loan

Capital One Multifamily Finance provides a $20.5 million Fannie Mae fixed-rate loan; and Aries Capital closes two small renovation loans.

Bethesda, Md.—Capital One Multifamily Finance announced that it has provided a $20.5 million Fannie Mae fixed-rate loan for the acquisition of The Manor Homes of Arborwalk, a 280-unit Class A apartment community in Lee’s Summit, Mo., part of the Kansas City MSA.

The borrower, a subsidiary of Milestone Apartments Real Estate Investment Trust, owns and manages a portfolio of 59 multifamily properties in Arizona, Florida, Georgia, Missouri, Tennessee, Texas and Utah. Milestone, a repeat customer of Capital One Multifamily, purchased Arborwalk in 2015.

Arborwalk is part of a 376-acre planned development located 25 miles southeast of downtown Kansas City, within short driving distance of schools and shopping. The property has a variety of one-, two- and three-bedroom units in 28 buildings. Community amenities include a clubhouse, business center, fitness center, pool and movie theater room.

Aries Capital closes two small renovation loans

857-59 N. Hoyne

857-859 N. Hoyne

Chicago—Aries Capital announced that Eric Jones, vice president, from the firm’s Chicago office has completed two loans for the purchasers of two multifamily properties located in Chicago. Fannie Mae was the investor in both transactions.

In the first transaction, Aries Capital arranged a $1.8 million loan for a 12-unit apartment building located at 857-859 N. Hoyne in Chicago’s Ukrainian Village neighborhood. The apartment community features a mix of one- and two-bedroom units. Aries was able to secure a 10-year, fixed-rate, non-recourse loan that represented 100 percent of the total rehab cost with only 60 days of stabilized collections. The loan features a 30-year amortization, 75 percent loan-to-value ratio and was closed through Aries Capital’s Small Balance Multifamily Program.

Aries Capital arranged an additional $860,000 loan for the same borrower through the Small Balance Multifamily Program. Also situated in Ukrainian Village, this apartment property features six units and is located at 845 N. Leavitt in Chicago. Aries Capital was able to secure a 10-year, fixed rate, non-recourse loan featuring a 30-year amortization and a 75 percent loan-to-value ratio. As in the previous transaction, the loan represented 100 percent of the total rehab cost and was secured with only 60 days of stabilized collections.

“Upon purchase of the properties, Maven Real Estate Partners waited for the existing tenant leases to expire to begin an extensive renovation of the properties,” said Jones of Aries Capital. “Once the rehab was completed, the apartments were returned to market and fully leased at a higher rental rate thereby effectively creating substantial value in the property. Based on the increased property values, the stability of the borrowers and the quality of the properties and tenants, we were able to deliver a loan that returned 100 percent of the borrower’s rehab costs with agreeable terms through our Small Balance Loan Program.”