Eight Common Commercial Real Estate Investor Questions

Whether you are just beginning your investing journey or are looking to take your portfolio to the next level, Arbor stands ready with our talented team and decades of expertise. Given our vast experience and national footprint of successful deals, we are familiar with many common commercial real estate investor questions, such as the ones answered in this article.


Multifamily is Well-Positioned for Short- and Long-Term Growth

With the macroeconomy maintaining its underlying strength and a handful of rate cuts expected by the Fed within the next 18 months, green shoots of optimism within the multifamily sector are multiplying. Even as high interest rates impede normal operations, stabilization is underway while the sector’s long-term prospects remain unwavering. In this deep dive, our research teams will explore the tailwinds underpinning the multifamily sector’s short- and long-term outlook.

Refinance of Existing HUD-Insured Loan

FHA® Interest Rate Reduction (IRR) Refinance of Existing HUD-Insured Loan   Arbor provides this program to reduce the interest rate on qualified existing HUD-insured multifamily loans. The HUD-insured loan remains in place, with reduced payments based on the new rate, the current balance, and the remaining term. The existing prepayment penalty must be paid in full. V041624

Mortgage Insurance for Rental Housing for Urban Renewal and Targeted Redevelopment

FHA®220 Mortgage Insurance for Rental Housing for Urban Renewal and Targeted Redevelopment*   Arbor provides FHA-insured, long-term, fixed rate financing for new construction and substantial rehabilitation of multifamily projects nationwide. This program provides for both construction and permanent financing for projects in urban renewal areas and other areas where local governments have undertaken designated revitalization activities. Applications are typically processed in two stages (preliminary application followed by firm application). Affordable/rental assisted projects and HUDexperienced development teams may request a “straight to firm” application, saving significant time by eliminating the preliminary application stage. V020224


Regional Construction Trends: Annual Multifamily Completions Surged in the South and West

After the volume of newly issued multifamily permits hit a 37-year high in 2022, multifamily completions surged another 22.3% last year. As the sector continues to gain strength, its growth has remained concentrated in the southern and western regions of the country, according to an analysis of new data from the U.S. Census Bureau’s Survey of Construction.


The Evolving Characteristics of Multifamily Construction

During the post-global financial crisis (GFC) cycle, a disproportionate share of new multifamily construction was of high-rise units in properties with amenities. However, the tides have turned. The rising cost of homeownership has brought the need for more affordable housing development in the U.S. to the top of many legislative agendas. In this deep dive, our research teams utilize data from the U.S. Census Bureau’s Annual Survey of Construction to show how and why the characteristics of new multifamily properties continue to evolve alongside shifting market needs.


Video: Growing LGBTQIA+ Visibility in the CRE Industry

LGBTQIA+ Pride Month is recognized in June, but its lessons are timeless. During a recent conversation between Tres Seippel, Director, Construction Management at Arbor, and Dr. Sam Chandan, Founder of Chandan Economics, Founding Director, NYU Chen Institute for Global Real Estate Finance, and Co-Chair of the Real Estate Pride Council, Seippel shared why it is more important than ever for the industry to embrace visibility and show support for employees who identify as LGBTQIA+ or other diverse backgrounds.

General: 800.ARBOR.10


Healthy Housing Rewards®, Enhanced Resident Services, and Healthy Design

Arbor’s Fannie Mae Multifamily offers Healthy Housing Rewards, a product feature that provides lower pricing to finance affordable properties with healthy design features. Enhanced Resident Services is a product feature that provides lower pricing to finance affordable properties with enhanced resident services that improve the health and stability of their residents including health and wellness services, work and financial capability support, and more. Healthy Design is a product feature that provides lower pricing to finance affordable properties with health-promoting design and operational features including playgrounds, fitness equipment, tobacco-free environments, green spaces, and more.

  • Lower interest rate
  • Healthy Design: Reimbursement for Healthy Design Certification (up to $6,500)
  • Enhanced Resident Services: Reimbursement for initial Sponsor certification (CORES) and Enhanced Resident Services Property certifications
  • Flexible underwriting to specific affordable developments
  • Flexible loan terms, and fixed- or variable-rate financing options
  • Certainty and speed of execution
  • Affordable Housing Properties with at least 50% of the units affordable at 80% of Area Median Income or less
  • Healthy Design: Must obtain Healthy Design certification from an approved Fannie Mae provider.
  • Enhanced Resident Services: Must obtain Sponsor certification and Property-level certification from an approved Fannie Mae provider
  • One-time benefit per borrower per property; Healthy Design and Enhanced Resident Services cannot be combined
Pricing Healthy Design: 15 basis points discount
Enhanced Resident Services: Up to 30 basis points discount
Term 5-30 years
Amortization Up to 35 years
Healthy Design Certification Certification fee is reimbursed up to $6,500 by Fannie Mae
Enhanced Resident Services Certification Sponsor Certification: Cost of initial Sponsor certification is reimbursed 100% by Fannie Mae; Sponsor must obtain recertification every 5 years
Property Level Certification: Initial certification cost of property-level compliance will be 100% reimbursed by Fannie Mae; Borrower must obtain yearly property certification.
Interest Rate Fixed- and variable-rate options available
Maximum LTV Varies by product type
Minimum DSCR Varies by product type
Prepayment Availability Flexible prepayment options are available including yield maintenance and declining prepayment premium
Loan Amount No minimum or maximum
Rate Lock 30- to 180-day commitments. Borrowers may lock the interest rate using Streamlined Rate Lock option. Confirmation of Healthy Design certification or sponsor-level and property-level certifications is required prior to rate lock
Interest Accrual 30/360 and Actual/360
Recourse Non-recourse execution is available, with standard carve-outs for “bad acts” such as fraud and bankruptcy required
Third-Party Reports Standard third-party reports, including Appraisal, Phase I Environmental Assessment and a Property Condition Assessment, are required. Confirmation of Healthy Housing Rewards features and eligibility is required
Assumption Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience


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