From California to Maui, the frequency and scope of wildfire events are rising, causing insurance markets and public agencies to reevaluate property in areas at risk for catastrophic damage. As a result, rental housing providers are seeing greater limitations to coverage, higher premium prices, and, in some cases, a total absence of viable private insurance — a trend detailed in the NMHC 2023 State of Multifamily Risk Survey and Report. This troubling new trend has placed many rental housing operators in a bind where they must simultaneously contend with the declining availability and affordability of insurance options.
In the last three years, multifamily construction has reached levels not seen since the 1980s, supported, in part, by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) loans. If you are exploring the acquisition, refinancing, rehabilitation, or new construction of conventional multifamily, affordable housing, seniors housing, or a healthcare facility, consider FHA multifamily construction loans, a stable financing option with excellent terms and many other attractive advantages.
More than halfway through 2023, the single-family rental (SFR) sector continues to demonstrate why it deserves the attention of multifamily investors.
While the single-family rental (SFR) sector’s rent growth averages have retreated from record highs, structural tailwinds are keeping price growth positive — both nationally and in major SFR markets. In this research brief, Chandan Economics and Arbor Realty Trust analyze DBRS Morningstar data, which covers the top 20 MSAs by SFR activity, to discover the metropolitan areas where SFR rent growth is the hottest right now.
Fannie Mae recently announced that its Small Loan cap has increased from $6 million to $9 million for all loans committed as of August 22, 2023. Multifamily borrowers and lenders have praised the change to the Fannie Mae Small Loans program, which will encourage greater investment in a rapidly growing sector where demand remains high despite market volatility.
While macroeconomic headwinds may not recede soon, tenant dependability, the core strength of small multifamily, has proven to be a powerful antidote to financial market storms.
As Baby Boomers reach retirement age, their evolving geographic preferences are strengthening housing markets and local economies in new locations, which feature attractive climates, relative affordability, and ample outdoor activities. With swelling populations of senior citizens, our top five emerging metropolitan areas for retiree relocation are fertile ground for multifamily real estate investment.
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Arbor offers CMBS financing for multifamily, office, retail, industrial, hotel and self-storage.
Arbor’s commercial mortgage backed security expertise and experience has allowed us to build a loan platform for you with unique agility, flexibility and, above all, personalization. Arbor’s unique multifamily CMBS loan advantages include maximized leverage, rapid execution, personalized benefits of working with a true relationship lender and flexible options, including bridge-to-permanent CMBS loans, mezzanine and preferred equity financing.
$5,000,000 – $100,000,000
10 years, 5 or 7 year term available in select instances.
25 year amortization for hotels; 30 year amortization for other property types with up to 10 years of interest-only available in select instances.
1.25x
Up to 70%-75% of appraised value depending on property characteristics.
Fixed rate throughout term and priced over corresponding swap rate.
Office, retail, industrial, hospitality, self-storage, mixed-use, manufactured housing communities and multifamily.
All U.S. markets.
Special-purpose entity required.
Taxes, Insurance and Replacement Reserves typically required.
Tenant Improvement and Leasing Commissions typically required for commercial properties.
Non-recourse except industry-standard “bad act” carve-outs.
Typical 2 to 3 year lockout, defeasance or yield maintenance thereafter.
Permitted subject to lender approval and an assumption fee.
First-lien mortgage.
$50,000 expense deposit – adequate to cover third-party reports, legal fees and other customary costs.
None
May be allowed in accordance with loan standards.
May be allowed in accordance with loan standards.