Articles

How Multifamily Property Renovations Add Value and Marketability

The ideal time to renovate is when the rental market is strong. With high occupancy rates, borrowers are more likely to quickly realize returns on their multifamily property renovations through higher rents. However, renovating during a market downturn, when rents are often cheaper, inventory is higher, and materials are more affordable, is also a sound strategy.

Current Reports

Single-Family Rental Investment Trends Report Q2 2024

Quarter after quarter, the single-family rental (SFR) sector reaches new heights. From new construction to cap rates, Arbor’s Single-Family Rental Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, details how the sector’s healthy fundamentals create profound optimism in its long-term prospects.

Articles

Arbor Sponsors Smile Farms Golf Outing Supporting Local Employment Opportunities

Arbor, which takes pride in helping employees reach their full potential, was honored to sponsor and participate in Smile Farms’ 10th Anniversary Golf Outing on May 20 at the Plandome Country Club on Long Island, NY, benefiting the Long Island-based organization dedicated to advancing opportunities for people with disabilities.

Articles

New York State’s 2025 Budget Advances Affordable Housing Goals

In April, New York State Governor Kathy Hochul announced a landmark budget agreement heralded as a giant step for affordable housing. New York’s FY 2025 Enacted Budget includes several key policy changes that could create thousands of affordable housing units across the state.

Articles

SFR East 2024: How Economics and Demographics Shape the Rental Market

IMN’s Single Family Rental Forum (East), the cornerstone gathering of the SFR industry, concluded on May 22, 2024, in Miami, FL. Over three days, 1,800 attendees listened to more than 280 speakers discuss all angles of the SFR industry. On the first day of the conference, Arbor’s Tres Seippel, Director, Construction Management, participated in a wide-ranging panel discussion examining economic and demographic forces influencing SFR and build-to-rent (BTR), which also featured Rick Dalton, President of the Dalton Group, Domonic Purviance of the Federal Reserve Bank of Atlanta, Wade McGuinn, CEO of McGuinn Hybrid Homes, and Heather Williams, VP at Willow Bridge Property Company.

Articles

Affordable Housing Market Snapshot — May 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. With more funding on the way, policymakers and private market advocates are pressing ahead with plans to add units to an increasingly tight housing market.

General: 800.ARBOR.10

FREDDIE MAC®

Fixed-Rate

Arbor provides competitive, tiered pricing for the acquisition or refinancing of multifamily projects nationwide, including recently completed projects.

Loan Amount Generally $5 million to $100 million; however, larger or smaller loan amounts are considered.
Loan Term 5 to 10 years. Up to 30 years for fixed-rate loans if loan is not purchased for securitization.
Amortization Up to 30 years. Interest-only options are also available.
Minimum DSCR 7-year term or greater: 1.25x; 5-year term: 1.30x
Maximum LTV 7-year term or greater: 80%; 5-year term: 75%.
Rate Structure Fixed
Eligible Properties Multifamily
Eligible Borrower Loans greater than $5 million, borrower must be Single Purpose Entity. Loans under $5 million, borrower may be a Single Asset Entity.
Tax & Insurance Escrows Generally required
Replacement Reserves Generally required
Recourse Non-recourse except for standard carve-out provisions
Commercial Space No more than 40% of effective gross income and no more than 40% of property’s total square footage. Final determination made by Freddie Mac.
Required Reports Appraisal, Property Condition Assessment and Phase I Environmental, Zoning, Insect and Flood.
Prepayment Yield maintenance until securitized followed by two-year lock-out; defeasance thereafter. No prepayment premium for final 90 days of term. Additional prepayment options are available.
Assumable Subject to approval and 1%
Subordinate Financing Not allowed
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSCR and lower LTV.
Rate Lock Early rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase; Index Lock option is also available. Sellers should consult with their regional Freddie Mac representative to determine eligibility
Application Deposit $26,500. Covers all estimated underwriting costs (including application fee).
Legal/Closing Fee Arbor’s Counsel Fee to be determined at application
Good Faith Deposit Greater of 2% of the maximum mortgage amount or $50,000 due at rate lock for early rate-lock transactions less than eight months, but refundable post-closing.

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