Uncategorized

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.

Uncategorized

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

Green Financing®

Arbor’s Fannie Mae Multifamily suite of Green Financing solutions includes options for acquisition, refinance and supplemental financing. Green Financing solutions create a “triple bottom line” by supporting increased cash flows, better quality housing, and reduced energy and water usage.

Great Incentives
  • Lower interest rate
  • Fannie Mae pays 100% of energy and water audit report; loan must close as Green Rewards
  • Up to 5% more in loan proceeds
  • Increased net cash flow by underwriting projected energy and water cost savings
  • No minimum investment per unit
Minimum Loan Amount $750,000
Loan Term Up to 30 years
Amortization Up to 30 years; interest-only options also available
Minimum DSCR Green Rewards: 1.25 Conventional, 1.20 Affordable

Green Building Certification pricing break: 1.25 Conventional, 1.20 Affordable

Maximum LTV Varies by Asset Class and product type
Rate Structure Fixed- and adjustable-rate options available
Accrual 30/360 and Actual/360
Eligible Properties Conventional, affordable, seniors, military and cooperative properties
nationwide are eligible. A Manufactured Housing Community is eligible only if a Solar PV system is selected as a required efficiency measure. (Manufactured Housing Communities are not eligible); Bborrower must commit to improvements projected to reduce the whole property’s annual energy and/or water usage by at least 30%, of which a minimum of 15% must be attributable to projected savings in energy consumption. Improvements must be installed within 12 months of loan origination.
Eligible Borrower Single asset entity
Occupancy Requirements 85% physical occupancy for 90 days; 70% economic occupancy required
Tax & Insurance Escrows Monthly deposits required
Replacement Reserves Monthly deposits required; underwritten at a minimum $250 per unit per annum; Costs for green efficiency improvements escrowed at 125%
Recourse Non-recourse available, with standard carve-outs for “bad acts” such as fraud and bankruptcy
Commercial Space Maximum 35% of net rentable area and maximum 20% of effective gross income
Assumable Subject to approval and 1% fee
Required Reports Appraisal, Property Condition Assessment, Phase I Environmental and a High Performance Building (HPB) report; Fannie Mae reimburses 100% of the cost for the HPB subject to the loan closing
Prepayment Yield maintenance and other declining prepayment options are available
Subordinate Financing Not allowed without written approval
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 $30,500; covers estimated processing and legal fees
Origination Fee Minimum 1%; par pricing available
Good Faith Deposit 2% of loan amount due at rate lock, but refundable
Verification of Property Improvements Property improvements must be completed within 12 months; lender will verify completion of the agreed-upon property improvements; borrower must report the property’s annual energy performance metrics, including ENERGY STAR® score

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