Arbor’s
Private Label Program
Arbor is expanding financing options for investors in the Private Label marketplace.
| 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 |
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