Aries Capital VP Eric Jones just completed a $2.8M loan for the buyer of a 37-unit apartment complex in Logan Square, using a program that is fast becoming the top choice of neighborhood multifamily investors.

For its acquisition of 1944 N Spaulding, Maven Real Estate Partners landed a 10-year, non-recourse loan with a 30-year amortization through Aries's small loan program (via Fannie Mae), Eric tells us. The perks, normally reserved for large loans: properties under $5M get non-recourse debt, LTVs up to 80%, fixed interest rates (based on current Treasuries) for up to 10 years, and a cap on third-party and legal fees. (Very similar to the party bag at our 8th birthday.) One unique aspect of this deal was the property’s (below) expiring agreements with month-to-month rent subsidy providers, Eric says, which all used different methods of reporting and do not always deliver rent on a regular schedule.

With rent subsidies creating a lot of peaks and valleys in the financials, there was extra red tape when explaining things to the underwriter, he tells us. While multifamily investors can find comparable rates with small bank loans, the small balance program can provide a longer fixed term and higher leverage. Banks also typically require personal recourse (unless you’ll settle for 60% to 65% LTV), which many investors swore off after it took them to the cleaners during the downturn, Eric says. Outside of work, Eric’s looking forward to some warmer weather and an end to the city’s hibernation.