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Commercial Bridge Loans: Fast, Flexible Financing for Multifamily Investors

With constantly changing market conditions, investors sometimes need access to capital with flexible terms to improve or secure an asset. Commercial bridge loans are a popular financing tool that provides borrowers with short-term capital for renovations and purchases. They are often the perfect first step in the door to the beginning of a long-term financial partnership.

Current Reports

Single-Family Rental Investment Trends Report Q1 2024

On the heels of a strong 2023, the single-family rental (SFR) sector is positioned to expand even more in 2024. Build-to-rent (BTR) starts ticked up in the third quarter to reach 7.8%, another record high. With occupancy rates stable and lease renewal rent growth above historical averages, SFR has healthy fundamentals that will continue to support growth amid headwinds, Arbor’s Single-Family Rental Investment Trends Report Q1 2024, developed in partnership with Chandan Economics, shows.

Analysis

U.S. Multifamily Market Snapshot — Q4 2023

The U.S. multifamily market continued to show signs of slowing at the end of 2023, although demand remained robust, with high home prices leading younger generations of higher-income households to choose renting over homeownership.

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Arbor Recognized as Top Lender by Fannie Mae, Freddie Mac, and FHA in 2023

Arbor’s platform of diverse multifamily financing solutions and our strong industry relationships drive us to the top of the multifamily lender rankings year after year. Through decades-long partnerships with Fannie Mae, Freddie Mac, and FHA, our best-in-class team delivered results for our borrowers in 2023, propelling Arbor to the top of the partner rankings.

Current Reports

Small Multifamily Investment Trends Report Q1 2024

Small multifamily starts the year from a position of strength with normalizing expense ratios and healthy occupancy rates. After demonstrating resiliency amid headwinds, this subsector is ready to capitalize on any positive momentum in the financial markets. Arbor’s Small Multifamily Investment Trends Report Q1 2024, developed in partnership with Chandan Economics, examines and explains the key developments every investor needs to know.

General: 800.ARBOR.10

FANNIE MAE DUS®

Cooperative Apartment Financing

Arbor’s Cooperative Apartment Financing program provides blanket mortgage financing for cooperative multifamily housing.

Loan Amount $750,000 minimum
Loan Term 5 to 30 years
Amortization Up to 30 years
Minimum DSCR 1.0x for cooperative; 1.55x as market rental project
Maximum LTV 55% (on a market rental basis)
Rate Structure Fixed rate
Eligible Properties Cooperative projects, minimum five units, property condition rating of two or better, limited equity cooperative properties for low- and moderate-income families
Eligible Borrower Single asset cooperative corporations
Market Acceptance Property must be located in an area evidencing strong market acceptance of cooperative housing
Occupancy Requirement 85% physical occupancy and 70% economic occupancy for 90 days prior to commitment date
Tax & Insurance Escrows Monthly deposits required
Replacement Reserve Underwritten at a minimum $250 per unit per annum
Recourse Nonrecourse execution available with standard carve-outs for “bad acts” such as fraud and bankruptcy
Commercial Space Eligible
Required Reports Appraisal, Property Condition Assessment and Phase I Environmental
Prepayment Loans may be voluntarily prepaid upon payment of yield maintenance
Subordinate Financing Available through Fannie Mae supplemental loan program
Pricing Tiered pricing matrix; more favorable terms available for higher DSC and lower LTV
Rate Lock 30- to 180-day commitments; borrowers may lock a rate with the Streamlined Rate Lock option
Application Deposit $20,500; covers estimated processing and legal fees
Origination Fee Minimum 1%; par pricing available
Good Faith Deposit 2% of loan amount, due at rate lock, refundable post-closing

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