Aries Capital Vice President Eric Jones has arranged $1.56 million in permanent debt on behalf of borrower, Metro Property Group. The loan was used to purchase a 65-unit apartment building located at 7733 S. South Shore in Chicago.
The borrowing entity is controlled by a foreign national, which increased the complexity of the deal and underwriting requirements. Although the borrower owns several single-family residential properties in the United States, this is the first time Metro Property Group has purchased commercial real estate in this country.
“The financing process is usually more arduous for a foreign national borrower,” Jones said. “Most lenders require tax returns and credit reports for both countries, and may ask for additional documents, including extra financial and personal references. Tight management of this process is critical, as the sheer amount of paperwork can be overwhelming for the borrower.”
Aries delivered a 10-year, non-recourse loan at 5.675 percent interest rate and for 65 percent of the purchase price through a private lender. The loan will be amortized over 30 years.