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Arbor Marketing Campaign Wins Two Awards at Industry Gala

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Top SFR Annual Rent Growth Markets

Even as rents retreated elsewhere, single-family rentals (SFR) have continued to outperform all other housing sub-types, exceeding the all-property type national average in 17 consecutive months through February 2024, according to Zillow’s Observed Rent Index (ZORI). Annual SFR rent growth has seen substantial gains in many metropolitan areas since national rent growth peaked in March 2022. In this deep dive, the Chandan Economics and Arbor Realty Trust research teams pinpoint the metropolitan areas where SFR rents are rising the fastest.

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Arbor’s New True Colors Show Our Creativity and Green Roots

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Five Advantages of Adding Fannie Mae Green Rewards to a Multifamily Loan

Since the Fannie Mae Green Rewards program launched in 2015, green financing has become a mainstay of commercial real estate. In addition to reducing the environmental impact of multifamily housing, the Green Rewards program creates a triple bottom line with increased cash flows, higher quality housing, and lower energy and water usage. With a high upside and little downside, the program is well worth multifamily borrowers’ consideration.

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CRE Solutions for a Greener Planet Build Momentum

From California wildfires to rising sea levels to Florida hurricanes, the direct and indirect risks of climate change have grown in recent years, making a more substantial impact on the multifamily sector. As the need for sustainability becomes increasingly apparent, lawmakers and lenders have advanced programs and policies that show “going green” is a win-win.

Current Reports

Affordable Housing Trends Report Spring 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. Arbor’s Affordable Housing Trends Report Spring 2024, developed in partnership with Chandan Economics, examines the major policies and programs shaping the marketplace at a time when overdue federal funding expansions have increased agency budgets.

General: 800.ARBOR.10

Home | Freddie Mac | Floating-Rate
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FREDDIE MAC®

Floating-Rate

Arbor’s Floating Rate program is ideal for multifamily borrowers who want to take advantage of lower short-term rates with prepayment flexibility.

Loan Amount Generally $5 million to $100 million; however, larger or smaller loan amounts are considered.
Loan Term 5-, 7- and 10-year terms
Amortization Up to 30 years. Interest-only options also available.
Minimum DSCR 1.00 at the max note rate, floaters must also be sized to a fixed-rate equivalent at 1.25x.
Maximum LTV 7-year term or greater: 80%; 5-year term: 75%.
Rate Structure Borrower must purchase an interest rate cap from a third-party cap provider. No cap necessary for loans with an LTV ratio of less than 60%.
Eligible Properties Multifamily. Cooperatives not allowed.
Eligible Borrower On loans over $5 million must be Single Purpose Entity (SPE)
On loans less than $5 million, borrower other than a tenancy in common may be a Single Asset Entity
Tax & Insurance Escrows Generally required
Replacement Reserves Generally required
Recourse Non-recourse with standard exceptions for fraud and misrepresentation.
Commercial Space No more than 40% of effective gross income and no more than 40% of the property’s total square footage.
Required Reports Appraisal, Property Condition Assessment and Phase I Environmental, Zoning, Insect and Flood.
Prepayment Four main prepayment options are available with no premium for final 90 days
Assumable Subject to approval and 1%
Subordinate Financing Not allowed
Pricing Tiered Pricing Matrix. More favorable terms are available for higher DSCR and lower LTV.
Rate Lock Early rate-lock option available for varying durations, typically ranging from 60 to 120 days from rate-lock until Freddie Mac purchase; Sellers should consult with their regional Freddie Mac representative to determine eligibility.
Application Deposit $26,500. Covers all estimated underwriting costs (including application fee).
Legal/Closing Fee Arbor’s Counsel Fee to be determined at application
Good Faith Deposit 1% of the maximum mortgage amount, but not less than $25,000.

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ARBOR.COM | 800.ARBOR.10
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