Stephen York is a nationwide leading large loan lender with expertise across all agency product types and structured transactions. Together with Arbor, he offers unparalleled experience and service to clients. Through Arbor’s customized product offerings and track record, Stephen ensures speed and certainty of execution, no matter the complexity of the deal or size of the loan.
FREDDIE MAC® Student Housing Value-Add Loan Arbor’s Student Housing product provides attractive terms and competitive prices for the purchase or refinance of properties that, because of construction and location, specifically cater to a student tenant base and may or may not be readily convertible to conventional multifamily housing. Offers short-term, negotiable financing for upgrades of $10,000 to $25,000 per unit Allows for a wide variation in borrower term and structure needs Up to 50% of funds may be spent on unit interiors Up to 75% of funds can be spent on exteriors Budget can be adjusted up to 20% without additional approval Interest-only and uncapped floating-rate loan Eligible mixed-use properties are supported Eligible Borrowers Experienced borrowers who have successfully demonstrated expertise with comparable student deals. 1.5x the standard minimum net worth and liquidity requirements for guarantors Eligible Property Types Properties with no more than 250 total units or 625 beds Well-constructed properties requiring modest repairs Market laggards that require capital infusion and new/improved management Real-estate owned properties in receivership that are capable of improved performance School Size 15,000 student Read the full article…
The ongoing inventory consolidation in the multifamily market is resulting in higher quality assets. This is illustrated in the steady annual increases in rents, especially in small apartment properties. Average Rent Levels Across Asset Type The current consolidation in the multifamily market, characterized by steady large building inventory expansion and a slight contraction in small building units, is helping retain better performing assets with higher rents. The above contraction in small building units comes in the backdrop of rising competition between large apartment buildings and single-family homes for Millennial rental demand. As shown below, based on the latest data from the American Community Survey (ACS), the average monthly gross rent (total housing expense) of small apartment property units reached around $1,040 in 20161. This is an increase from $1,000 in the previous year. In comparison, US average monthly gross rent in large building units increased from $1,200 in 2015 to $1,240 in 2016. At the other end of the market, the rent for single-family homes was slightly above that of large buildings. Duplex-quadruplex units were the least expensive rental option Read the full article…
Buoyed by the favorable economic outlook, a robust labor market and higher inflation, small balance multifamily lending in Q1 2018 was $44.5 billion, improving on Q1 2017.
After standing out as one of the stronger performing markets in the country during 2017, Dallas continued its momentum during the first quarter of 2018. Rent growth and investment activity remained strong, while vacancy rates held at historically low levels despite a high volume of new supply added to the market. Rental Market According to data from Reis, the average asking rent in Dallas finished Q1 2018 at $1,141/unit. This figure is up 0.9% since the end of 2017, and has risen in every quarter since year-end 2009. Year-over-year asking rent increased 5.6%, which ranked 15th nationally. Rent for Class A properties increased 5.4% year-over-year, while the Class B/C average rose 4.4%. Reis forecasts overall asking rent to grow 4.7% during 2018 and slow to 1.9% by 2022. We observed previously that Dallas led the nation with 17,200 new multifamily units completed during 2017. Although demand has been strong, it has not quite been able to keep up with the pace of new supply, as absorption totaled only 11,100 units for the year. That trend continued in the first quarter, Read the full article…
At year-end 2017, we took a look at the Los Angeles multifamily market. We noted then that Los Angeles stood as one of the stronger markets nationally, with low vacancy and high investment volume. As we look at results from the first quarter of 2018, market fundamentals remain strong, although signs of weakness continue to be observed.
Complementing the recent review of household composition and living arrangements, a closer look at householder age indicates the steady graying of small asset apartment demand.
A closer examination of household composition, including single renters and families, as well as living arrangements reveals distinct patterns across rental asset classes.
