Developers Gain Loan for River West Apartments

CHICAGO—Douglas Crocker II, former CEO of Equity Residential, and Matt McHugh, managing member of the Affito Group, have gained a $2.3 million loan for a nine-unit apartment building here in River West.

Crocker and McHugh bought the recently completed property at 693 North Peoria Avenue with cash last year and engaged Aries Capital to place debt on the property. The 10-year, non-recourse Fannie Mae loan features a 4.13 percent interest rate with 30 year amortization.

“Due to the strength of the borrower, the building quality, and the location, we were able to lock a rate on the loan with one month’s operating history and secure it with two month’s history,” says Aries Vice President Eric Jones in a statement.

Aries Capital is also creating a custom financing program to aid Crocker and McHugh with future acquisitions and refinancing. “The borrowers are very active buyers. We are now working with them on setting up a bridge program which will allow them to take down properties that may need some rehab or a little more operating history at increased rents before we place long-term, fixed rate, non-recourse debt on them,” says Jones.

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