Reliability of Small Multifamily Tenant Base Fuels Recovery Our quarterly report on the current and emerging small multifamily investment trends features data and research from Chandan Economics. The report reviews the state of the market, identifying trends in underwriting, financing, cap rates, valuation and more. In the report, you’ll learn how small multifamily properties differ from larger properties, and the forces driving their investment performance. Key Findings: An analysis of work from home trends finds that small multifamily properties may be less affected than larger properties because fewer tenants can work remotely. Small multifamily cap rates held at 5.2% in the third quarter, effectively unchanged from last quarter. The refinancing share of originations rose as investors locked in rates ahead of potential monetary tightening and expected rate rise. Asset prices rose 2.9% from a year earlier and 7.7% over pre-pandemic highs. Complete the form to instantly access the full report!
Our 2021 Top Markets for Large Multifamily Investment Report ranks the top 50 U.S. metros based on eight key categories. Presented in the Arbor-Chandan Large Multifamily Opportunity Matrix, the top-ranking markets scored high in factors like labor market performance, renter demographics, population growth and COVID-19 response.
Our annual report on the top markets for large multifamily investment features data and research from Chandan Economics. Analyzing eight key categories, the report offers the Arbor-Chandan Large Multifamily Opportunity Matrix, ranking the top 50 U.S. metros based on their performance metrics. The top-ranking markets scored high in factors like labor market performance, renter demographics, population growth and COVID-19 response. Key Findings: Las Vegas topped the Opportunity Matrix rankings, largely due to its work from home (WFH) resiliency and recovering tourism industry. Four metros in Florida jumped significantly in the rankings, reflecting the state’s continued strong labor market performance despite the pandemic. The Sun Belt region generally ranked well across the Matrix factors, despite experiencing higher COVID-19 case counts per capita. Complete the form to instantly access the full report!
UNIONDALE, NY (October 14, 2021) – Arbor Realty Trust, Inc. (NYSE:ABR), a leading residential and commercial mortgage lender, recently closed nine transactions under its Freddie Mac Conventional lending platform. The loan proceeds were used to finance 1,925 units across nine properties in five states. As an approved Freddie Mac Optigo® Seller/Servicer, Arbor offers flexible financing solutions with highly competitive pricing and customized terms. “The flexibility provided by our Freddie Mac platform enables our team to deliver tailored financing solutions for our clients with compelling terms,” said Ivan Kaufman, Chairman and CEO of Arbor Realty Trust. “Our experienced team has a proven track record of assisting multifamily operators across the country with accessing Freddie Mac financing. Arbor partners with clients ranging from first-time borrowers to Freddie Mac’s Select Sponsors, guiding them through the loan process, from initial quote to funding.” Recent Freddie Mac Conventional transaction highlights include: Savannah, GA – Arbor provided $24M to support the refinancing of a 232-unit garden-style property in Savannah, GA. The shared amenities at this Class B property include common laundry, playground, clubhouse and picnic/barbecue area. Read the full article…
Affordable Housing Garners Greater Attention in Post-Pandemic Environment This new report series from Arbor and Chandan Economics explores the many facets of affordable housing and the major trends shaping the market. It’s a critical time to focus on affordable housing, as pandemic-related headwinds and longstanding structural forces have impacted housing affordability. Key Findings: The pandemic’s economic effects combined with surging rent prices have strained low-income renters. Reduced business income due to the pandemic-related downturn may decrease the value of Low-Income Housing Tax Credits (LIHTC), requiring developers to seek alternative financing sources. The share of mortgages utilizing the 4% LIHTC remained elevated through second-quarter 2021, reflecting the continued attractiveness of rehabbing versus ground-up development. Complete the form to instantly access the full report!
Arbor provides long-term Fannie Mae and HUD-insured financing solutions for developers and investors of affordable housing. Eligible properties include those that participate in the Low-Income Housing Tax Credit (LIHTC) or other program requiring long-term housing affordability restrictions, and those with Housing Assistance Payment (HAP) contracts. Our Bridge loans offer clients the ability to quickly execute upon opportunistic acquisitions of existing assets and a seamless transition to longer-term financing options.
The SCOTUS ruling to end the eviction moratorium is pushing the multifamily industry to come up with other solutions to help at risk renters. Read the full analysis.
Privacy Policy Overview This website is owned and operated by Arbor Realty Trust, Inc. (“Arbor,” “us,” “we,” or “our”). We respect your concerns about privacy. This privacy policy (“Policy”) applies to personal information we may obtain on this website and related websites where this Policy is posted (collectively, the “Web Site(s)”). Depending on where you reside, certain portions of this Policy also may apply to Arbor’s handling of personal information we collect from you whenever you communicate or interact with us, whether by using the Web Sites or whenever you engage with us in respect of the services we provide (together we refer to the Web Sites and services we provide as the “Services”). By using the Services, you agree to the terms of this Policy. This Policy describes the types of information we may obtain through the Web Site and/or the Services, how we may use the information, with whom we may share the information and the choices you may have regarding our use of the information. We also describe the measures we take to safeguard the Read the full article…
Chatter is dedicated to providing you with the practical research needed to be a successful multifamily investor. From our partnership with Chandan Economics to articles contributed from premier research firms, our goal is to keep you informed on all things multifamily.
Small apartment properties play a crucial role in maintaining affordable rental options for the workforce segment across US metros.
Small apartment buildings comprise the largest share of workforce housing demand within the top 20 metros, while single-family rentals dominate the next 30.
Workforce rental housing demand has increased the most in the smaller metros where apartment properties, both small and large, are increasing their shares of this demand segment.
Workforce segment renters living in small apartment properties are adapting to the changing economy, while also representing a broad occupational base.¹
Multifamily properties capture the largest share of the overall U.S. workforce rental demand, while single-family rentals are the largest individual asset class.
Rental demand from the workforce housing segment is on the rise, with a relatively higher concentration in single-family and small asset properties.
Data on the extent of housing-cost burden shows that relatively fewer households in small apartment properties are impacted severely by rental expenses.
Metros showing higher than average housing cost shares of household income are also home to higher concentrations of severely cost-burdened households.
The share of household income spent on housing costs for small properties ranges significantly across the largest U.S. cities. Overall, this share has declined slightly with the ongoing economic recovery, improving affordability in recent years.
In their unit mix, small apartment buildings are more specialized in bigger units compared to large properties, while also being more affordable. Renters can find value in small apartment properties, as examined in this update.