How Multifamily Property Renovations Add Value and Marketability

The ideal time to renovate is when the rental market is strong. With high occupancy rates, borrowers are more likely to quickly realize returns on their multifamily property renovations through higher rents. However, renovating during a market downturn, when rents are often cheaper, inventory is higher, and materials are more affordable, is also a sound strategy.

Current Reports

Single-Family Rental Investment Trends Report Q2 2024

Quarter after quarter, the single-family rental (SFR) sector reaches new heights. From new construction to cap rates, Arbor’s Single-Family Rental Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, details how the sector’s healthy fundamentals create profound optimism in its long-term prospects.


Arbor Sponsors Smile Farms Golf Outing Supporting Local Employment Opportunities

Arbor, which takes pride in helping employees reach their full potential, was honored to sponsor and participate in Smile Farms’ 10th Anniversary Golf Outing on May 20 at the Plandome Country Club on Long Island, NY, benefiting the Long Island-based organization dedicated to advancing opportunities for people with disabilities.


New York State’s 2025 Budget Advances Affordable Housing Goals

In April, New York State Governor Kathy Hochul announced a landmark budget agreement heralded as a giant step for affordable housing. New York’s FY 2025 Enacted Budget includes several key policy changes that could create thousands of affordable housing units across the state.


SFR East 2024: How Economics and Demographics Shape the Rental Market

IMN’s Single Family Rental Forum (East), the cornerstone gathering of the SFR industry, concluded on May 22, 2024, in Miami, FL. Over three days, 1,800 attendees listened to more than 280 speakers discuss all angles of the SFR industry. On the first day of the conference, Arbor’s Tres Seippel, Director, Construction Management, participated in a wide-ranging panel discussion examining economic and demographic forces influencing SFR and build-to-rent (BTR), which also featured Rick Dalton, President of the Dalton Group, Domonic Purviance of the Federal Reserve Bank of Atlanta, Wade McGuinn, CEO of McGuinn Hybrid Homes, and Heather Williams, VP at Willow Bridge Property Company.


Affordable Housing Market Snapshot — May 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. With more funding on the way, policymakers and private market advocates are pressing ahead with plans to add units to an increasingly tight housing market.

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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
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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