CHICAGO—Chicago-based Ares Commercial Real Estate Corporation has closed a $36 million first mortgage loan commitment collateralized by a nine-story, 101-unit apartment building located in New York City.

The borrower, a partnership between Benchmark Real Estate LLC and Western Heritable Investment Co. Ltd., is taking initial funding totaling approximately $31 million with the remaining $5 million in loan proceeds expected to be drawn down over time and used for renovations to the property.

“We are pleased to provide the sponsors with a senior mortgage for the acquisition and value-added renovation of this quality asset in a market with strong fundamentals,” said Bruce Cohen, president and chief operating officer of Ares Commercial Real Estate Corporation.