Marquette Gains $9M Loan for Failed Conversion Complex

NAPERVILLE, IL— Marquette Real Estate Investments has gained an $8.8 million loan on a fractured ownership in the Ponds of Naperville apartment complex here.

Marquette had bought the complex in 2000, at the corner of 75th Street and Modaff Road, when it was a 216-unit community. Units feature one and two bedroom options, and amenities include a swimming pool, fitness center and 24-hour emergency maintenance. Marquette started selling the units as condos in 2007, but after the recession there were 111 units unsold throughout the property. Marquette is renting out the remaining units.

Jeff Bucaro with Aries Capital arranged the first mortgage. “In spite of the fact that every lender in the country is seeking high-quality multi-family loans, there is almost no appetite from conventional lenders for this type of collateral structure,” said Bucaro in a statement. “We were able to bring a portfolio lender to the table and got them very comfortable with the high-quality sponsorship, consistent cash flows and the exit for the loan.”

Aries secured a lender that extended the loan at 75 percent LTV as the first mortgage on the non-contiguous units, and also allowed a recorded second mortgage at 80 percent LTV, along with additional mezzanine debt beyond the 80 percent. The deal structure included the flexibility of no prepayment penalty, ensuring that the borrower may sell and release individual units or prepay or refinance the entire loan, without penalty. The first mortgage loan features a 4.25 percent rate, a four-year term with extension options and a 30-year amortization.

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