While the 2008 financial crisis prompted a cyclical shift in U.S. housing — impacting everything from home prices to who can qualify for a mortgage — an equally impactful demographic change was just taking shape. The unprecedented wave of Baby Boomers that began retiring would disrupt the balance of the housing market.
Arbor Private Label
Arbor offers a complimentary loan program to our existing product lines to give borrowers added flexibility and financing options for their market-rate properties.
-
Arbor Private Label Loan Program Term Sheet
-
LOAN AMOUNT
$4 million minimum
-
LOAN TERM
5-, 7- and 10-year options
-
AMORTIZATION
30 years; interest-only periods can range from zero to ten years, determined by leverage, debt yield, market and overall credit quality
-
MINIMUM DSCR
1.25x
-
MAXIMUM LTV
75% (amortizing); 65% (full-term interest-only)
-
MINIMUM DEBT YIELD
7%; exceptions considered on a case-by-case basis
-
INTEREST RATE
Fixed rate over the greater of the 10-year Treasury rate or 10-year swap rate; spread varies based on risk and terms
-
ORIGINATION FEE
Minimum of 0.25%
-
CASH MANAGEMENT
Springing Lockbox upon EOD
-
SUBORDINATE DEBT
Mezzanine debt available on a case-by-case basis; program can also allow for future mezzanine debt
-
BORROWER/SPONSORSHIP
Borrower must be a newly formed, single-purpose, bankruptcy-remote Delaware LLC. Sponsor must have an established track record, appropriate net worth and liquidity commensurate with transaction; normal expectations are a minimum net worth equal to the loan amount and liquidity of no less than 10% of the loan amount
-
MINIMUM OCCUPANCY
85%
-
COLLATERAL TYPES
Conventional multifamily
-
TAX AND INSURANCE ESCROWS
Monthly deposits required
-
REPLACEMENT RESERVES
Monthly deposits required
-
RECOURSE
Generally nonrecourse with standard carve-outs
-
PREPAYMENT
Defeasance; open during last three months of loan term
-
EARLY RATE LOCK
Available on a case-by-case basis
-
ASSUMPTIONS AND TRANSFERS
One-time assumption, subject to lender approval and payment of 1% fee
-
V020722
-