Articles

Top Multifamily Markets for Low Renter Turnover

Tenant retention is a valuable — though sometimes elusive — contributing factor to the strength of a multifamily property. Nationally, 29% of multifamily households signed a third lease for the same unit, according to an analysis of the U.S. Census Bureau’s American Community Survey. Locally, renter turnover was lowest in major coastal markets, like New York City, and highest in transient renter markets, like Charleston, SC.

Current Reports

Small Multifamily Investment Trends Report Q2 2025

While markets undergo rapid recalibration, the small multifamily market’s performance remains strong and stable. Arbor’s Small Multifamily Investment Trends Report Q2 2025, developed in partnership with Chandan Economics, details how the sector’s resilient fundamentals effectively support its growth amid ongoing economic volatility.

Proprietary Preferred Equity behind Conventional Loans

FREDDIE MAC® Proprietary Preferred Equity behind Conventional Loans   Arbor now offers access to proprietary preferred equity behind all Freddie Mac Conventional loans we originate. With Arbor, you can simultaneously secure a senior loan and preferred equity under one roof, streamlining your experience throughout the lifecycle of your loan.

Analysis

Top U.S. Multifamily Rent Growth Markets — Q1 2025

The U.S. multifamily market continued to settle into a more normalized cycle during the first quarter of 2025, as well-positioned investors began to take advantage of new opportunities in an uncertain economic environment.

Analysis

U.S. Multifamily Market Snapshot — May 2025

The U.S. multifamily market continued to settle into a normalized cycle during the first quarter of 2025, despite ongoing uncertainties surrounding the global economy and labor market.

Articles

Dr. Sam Chandan Dissects What’s Driving Top Market Growth

In a rapidly evolving economic environment, the top markets for multifamily investment tend to shift quickly. In this video, Dr. Sam Chandan, founding director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and founder of Chandan Economics, discusses the findings of Arbor’s Top Markets for Multifamily Investment Report Spring 2025, which was developed in partnership with Chandan Economics.

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FANNIE MAE DUS®

MBS as Tax-Exempt Bond Collateral (M.TEB) – Fixed Rate

Arbor’s MBS as Tax-Exempt Bond Collateral (M.TEB) – Fixed Rate issues MBS that can be used as collateral for either
(i) existing fixed-rate bond refundings, or (ii) new fixed-rate bond issues in conjunction with 4% Low-Income Housing Tax
Credits (LIHTC).

Benefits
  • Faster closings with our unique delegated model.
  • Declining prepayment options or yield maintenance.
  • Interest-only is available.
  • Guaranteed direct pass-through of principal and interest is more attractive to bond buyers.
Eligibility
  • Multifamily Affordable Housing properties.
  • Loans underwritten to Fannie Mae Guide Requirements for tax-exempt bonds.
  • Refundings or new issues with in-place rehab.
  • Immediate delivery or standby forward commitment.
Loan Term 10-30 years.
Amortization Up to 35 years.
Maximum LTV
  • 90% for 4% LIHTC properties with at least 90% of the units meeting affordability requirements.
  • 85% for 4% LIHTC properties with fewer than 90% of the units meeting affordability requirements.
  • 80% for refundings.
Minimum DSCR
  • 1.15x for 4% LIHTC properties with at least 90% of the units meeting affordability requirements
  • 1.20x for 4% LIHTC properties with fewer than 90% of the units meeting affordability requirements for refundings.
Issuer and Trustee Fees Loan sizing must include underwriting of the Issuer and Trustee Fees; however, Issuer and Trustee Fees will be paid directly by borrower and are not enhanced or passed through by Fannie Mae.
Mandatory or Optional Redemption Feature No separate mandatory or optional redemptions outside of the MBS structure.
Prepayment Availability Flexible prepayment options available, including yield maintenance and declining prepayment premium.
Bond Payments Principal and interest payments will be based on a monthly schedule in accordance with the terms of the MBS and will flow through the bond trustee for payment to the bondholder. Payments of principal and interest under the MBS are paid in arrears on the 25th of the month based on the prior month’s accrual; payment to the bondholder occurs on the following business day.
Tax-Exempt to Taxable Conversion Feature If there is a single bondholder, and subject to Issuer consent, the bondholder may pursue an option to redeem tax-exempt bonds and hold the MBS directly.
For 4% LIHTC transactions, this redemption cannot occur prior to the Placed-in-
Service date.
Loan Documents Documented on Fannie Mae loan documents; Issuer must utilize the Fannie Mae form Indenture.
Third-Party Subordinate Financing Hard subordinate debt (which requires scheduled repayment of principal) is permitted only if provided by a public, quasi-public, or not-for-profit lender and combined debt service coverage cannot fall below 1.05x. Soft subordinate debt is permitted subject to requirements which include capping payments at 75% of available property cash flow after payment of senior liens and property operating expenses.
Recourse Non-recourse execution is with standard carve-outs for “bad acts” such as fraud and bankruptcy.
Escrows Replacement reserve, tax, and insurance escrows are typically required.
Third-Party Reports Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.

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