Articles

Top 10 Markets for Undergraduate Apartment Renters

For undergraduate students nationwide, apartments fill the gap in campus housing. Off-campus housing offers a better value proposition in many markets, giving students more space at a competitive price. In other markets, students pursue apartments due to insufficient dormitory space. As colleges and universities acquire and build to keep pace with enrollment, the supply-demand imbalance has created new opportunities for multifamily real estate investment.

Investment

Not Waiting for Normal

Even with the market in flux, opportunities continue emerging for well-positioned investors. Historically, some of the best multifamily deals were closed in down cycles or during the upswing to normalcy. Arbor’s Special Report Fall 2024 details why the current economic climate is ripe for investment.

Current Reports

Single-Family Rental Investment Trends Report Q3 2024

The single-family rental (SFR) sector’s performance surged again last quarter, demonstrating its ability to thrive in all economic cycles. SFR construction continued its record-breaking ascent as CMBS activity blossomed. Arbor’s Single-Family Rental Investment Trends Report Q3 2024, developed in partnership with Chandan Economics, examines the sector’s fundamentals as would-be homeowners weigh the rent-vs-buy calculation.

Articles

Could Build-to-Rent Be a Solution to Housing’s ‘Missing Middle’ Problem?

Did you know that at the same time many renters navigate a housing market with limited affordable options, new apartment development continues to be held back by World War II-era zoning restrictions? In many localities, regulations introduced in the mid-1940s have choked the multifamily pipeline for decades, creating a “missing middle” that leaves low-income renters in a lurch.

Articles

Build-to-Rent Construction Continues Its Record-Breaking Ascent

Increasingly, single-family rental (SFR) operators have been relying on build-to-rent (BTR) development to bridge the housing gap, accelerating the momentum of SFR construction through 2024’s halfway point. Both total SFR/BTR housing starts and BTR’s share of all single-family housing starts reached new record highs in the second quarter, setting the stage for another banner year.

General: 800.ARBOR.10

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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