Arbor Private Construction (APC) Attracts a Bevy of Borrowers in Strong Launch
Less than six months since its launch, Arbor Private Construction (APC) already has a robust pipeline of executable transactions, a strong sign that Arbor’s Chairman and CEO Ivan Kaufman correctly anticipated and identified changes in the construction lending marketplace when he introduced a new proprietary financing product last fall.
“We strongly believed there was a unique opportunity for Arbor amid the construction lending dislocation that began in early 2023,” said David E. Friedman, Arbor’s Executive Vice President, Syndicated Markets and Institutional Venture Lending Management. “Having that level of volume so soon after APC’s launch speaks to not only the power of our origination channels but proves our thesis that the construction lending landscape was in need of a creative debt solution that aligned a partnership between a long-term lender with long-term ownership.”
Arbor Financing Available for ‘Shovel-Ready’ Multifamily Construction
Launched in the fall of 2023, APC is a new construction financing product that complements the full suite of Government-Sponsored Enterprise (GSE), structured and agency-alternative financing options already available through Arbor. APC loans, which range from $25 million to $100 million, provide short-term, floating-rate financing to construction-ready multifamily projects.
Designed specifically for experienced sponsors in strong markets, APC is off to an auspicious start. It is well on track to meet or exceed its initial goals. “We have every expectation of achieving our 2024 origination target of $500 million with an outsized goal of $1 billion,” Friedman said.
A complement to Arbor’s single-family rental portfolio and build-to-rent financing programs, APC was created to serve sponsors with an established track record of constructing, owning, and managing multifamily assets and a net worth and liquidity commensurate with the loan’s credit profile. Loan proceeds are for “shovel-ready” vertical/garden-style ground-up multifamily developments with agency-qualifying characteristics located in primary or strong secondary markets with positive demographic, population, and employment trends.
In its first few months, APC has attracted intense interest from borrowers seeking to partner with our experienced, relationship-focused team. All borrowers who join our APC program gain the support of a trusted lending partner who will stand at their side when the shovel meets the ground and serve as their single lender throughout their loan’s life cycle, delivering efficiency, cost-savings, and a smooth transition to government-sponsored permanent financing.
Learn More About Arbor Private Construction
With more than 30 years of experience, Arbor is one of the country’s leading multifamily lenders. Year after year, we have been named one of the top Fannie Mae, Freddie Mac, and FHA lenders. From single-family rental to affordable housing, Arbor is a lender of choice for U.S. multifamily investors. Contact us today to learn more about our new APC loan program.
Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily, single-family rental, and affordable housing financing options or view our multifamily articles and research reports.