Special Report: Spring 2023

Special Report: Spring 2023 The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.   Key Findings: The sustainability of consumer financing and Read the full article…

Investment

Arbor’s Special Report Spring 2023

The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.

Articles

Renting On Credit: New Platforms Modernize Monthly Multifamily Transactions

Until recently, full-scale optimization has skipped over the basic monthly rental payment transaction, with 78% of more than 100 million renters using paper checks. But now, two programs, backed by global leaders in financial services, are incentivizing tenants to pay the rent on credit, with perks like automatic credit reporting and points towards future purchases.

Articles

Top Markets for Renters Under 30

Renters 30 years of age and under, who now make up slightly more than one-quarter of the heads of households of rental units, are bolstering housing demand in markets known for their affordability and livability.

Press Releases

Arbor Realty Trust, Inc. Completes $315 Million Freddie Mac Q Series Securitization

UNIONDALE, NY, December 15, 2022 (GLOBE NEWSWIRE) – Arbor Realty Trust, Inc. (NYSE:ABR) (“Arbor,” “our,” or “we”) today announced the completion of an approximately $315 million loan securitization through Freddie Mac’s Q Series securitization program (the “Securitization”). Arbor’s affiliated entity Arbor Realty SR, Inc. originated the loans and was the loan seller for the Securitization. The Securitization is Arbor’s first Read the full article…

Articles

Five Benefits of Making Multifamily Investing Part of Your Portfolio

Multifamily investing involves the purchasing of properties with rentable housing units. In these types of investments, a group of investors often works together to mitigate costs, split profit shares, and reduce risk. Multifamily properties include apartment complexes, condo buildings, and townhouses, among other property types. When investing in multifamily properties is researched and undertaken prudently, it can generate steady and reliable income streams in all economic cycles.

Analysis

Arbor’s Top Articles of 2022: A Banner Year for Multifamily

After taking a pause during the peak of the COVID-19 pandemic, the U.S. multifamily market experienced a banner year in 2022. Throughout the year, Arbor continued to provide unique research and insights into our markets. Here’s a look at our top Arbor research articles from 2022, in case you missed them.

GENERAL: 800.ARBOR.10

FANNIE MAE DUS®

Seniors Housing

Arbor’s Seniors Housing provides financing options for properties that provide Independent Living (IL), Assisted Living (AL), Alzheimer’s/Dementia Care (ALZ), or any combination.

Loan Amount Minimum $5M, with exceptions on a case-by-case basis
Loan Term 5 to 30 years
Amortization Up to 30 years
Minimum DSCR
  • 1.30x if the property is 100% Independent Living/li>
  • 1.40x for properties with an assisted living and/or Alzheimer’s component greater than 50%
  • 1.45x if the property is stand-alone Alzheimer’s/Dementia Care
  • 1.50x if the property contains skilled nursing units

For combinations of IL, AL, and ALZ, special rules apply to calculate minimum DSCR.

Maximum LTV 75% (80% for fixed-rate, tax-exempt bonds)
Rate Structure Fixed- and adjustable-rate options available
Eligible Properties
  • Independent Living properties
  • Assisted Living properties
  • Alzheimer’s/Dementia Care
  • Newly constructed and stabilized Seniors Housing facilities, as well as campuses containing skilled nursing beds on a case-by-case basis
Eligible Borrower Single Asset Entity. Owners and operators must have a minimum of five years experience in Seniors Housing, owning and/or managing a minimum of five stabilized properties
Property Requirement All properties must have a fully operational separate category sprinkler system in all units and in common areas and may not charge entrance fees. Typical community fees are allowed
Occupancy Requirement At least 90% occupied for each of the past five fiscal years
Tax & Insurance Escrows Fully funded replacement reserve, tax and insurance escrows are required
Replacement Reserves Underwritten at a minimum $300 per unit per annum.
Recourse Nonrecourse execution is available, with standard carve-outs required for “bad acts” such as fraud, bankruptcy and illegal transfers
Commercial Space Maximum 10% of net rentable area and 10% of effective gross income.
Required Reports Appraisal, Property Condition Assessment, Phase I Environmental, Zoning, Termite, Flood and Seismic Report (for properties in Seismic Zones 3 and 4)

Licensed seniors housing properties also require a Seniors Housing Liability Assessment Report

Prepayment Yield maintenance, defeasance, and graduated prepayment premium
Assumable Loans may be assumable, subject to review and approval by the Lender and Fannie Mae of the proposed new borrower’s financial capacity and experience. 1% assumption fee
Subordinate Financing Not allowed
Supplemental Financing Supplemental Loans are available
Pricing Risk based pricing; more favorable pricing available for higher DSC and lower LTV
Rate Lock 30- to 180-day commitments; the early rate lock option is available with prior approval from Fannie Mae, allowing the borrower to lock a rate after the lender completes preliminary underwriting; extended rate lock feature is also available, allowing the borrower to lock a rate 45 to 365 days in advance of closing
Application Deposit $20,500; covers estimated processing and legal fees
Origination Fee 1% of loan amount
Good Faith Deposit 2% of loan amount, due at rate lock, refundable post-closing

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