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Welcome to Chatter! We’re happy to be your source for multifamily news, research and insight. Bookmark us and be sure to sign up for our weekly newsletter to stay on top of all things financing and investment for the multifamily industry. We also invite you to follow us on Twitter. What is Chatter? So what Read the full article…

Research

How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

Around the Web

Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…

GENERAL: 800.ARBOR.10

FANNIE MAE DUS®

Student Housing

Arbor’s DUS 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 that may or may not be readily convertible to conventional multifamily housing.

Loan Amount $750,000 minimum
Term 5 – 30 Years
Amortization Up to 30 years
Minimum DSCR 1.30x for Fixed Rate
1.05x for Variable Rate
Maximum LTV Up to 75%
Rate Structure Fixed and adjustable rate options available
Eligible Properties Student Housing – Must be between 40% or greater student tenancy
Dedicated Student Housing – Specifically catered to a student tenant base; not readily convertible to conventional multifamily housing; must be 80% or greater student occupied; 20% of tenants are allowed to have lease terms of less than 12 months; requires 12-month leases and parental guarantees; food services not permitted; the property must be within 2 miles of campus boundary line or on a college/university-owned transportation line; property has to have operated for a least 1 full school year (i.e., August/September through April/May)
Occupancy Requirement Minimum 90%
Tax & Insurance Escrows Monthly deposits required. May be waived if certain criteria are met
Replacement Reserves Underwritten at a minimum $250 per unit per annum. Must be funded
Recourse Nonrecourse with standard exceptions for fraud and misrepresentation
Commercial Space Eligible
Student Population Requirement Minimum 10,000 students for dedicated student housing
Required Reports Appraisal, Property Condition Assessment, Phase I Environmental
Prepayment Yield Maintenance
Assumable Subject to approval and 1% fee
Subordinate Financing Not allowed
Supplemental Loans Eligible for secondary financing after 12 months
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV
Rate Lock 30- to 180- day commitments; early/extended rate lock options available
Application Deposit $20,500. Covers estimated processing and legal fees
Origination Fee Minimum 1%; par pricing available
Good Faith Deposit 2% of loan amount, refundable at closing

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