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Welcome to Chatter! We’re happy to be your source for multifamily news, research and insight. Bookmark us and be sure to sign up for our weekly newsletter to stay on top of all things financing and investment for the multifamily industry. We also invite you to follow us on Twitter. What is Chatter? So what Read the full article…

Research

How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

Around the Web

Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…

GENERAL: 800.ARBOR.10

FREDDIE MAC®

Floating-Rate

Arbor’s Floating Rate program is ideal for multifamily borrowers who want to take advantage of lower short-term rates with prepayment flexibility.

Loan Amount Generally $5 million to $100 million; however larger or smaller loan amounts are considered.
Loan Term 5, 7 and 10 year terms.
Amortization Up to 30 years. Interest-only options also available.
Minimum DSCR 1.00 at the max note rate, floaters must also be sized to a fixed rate equivalent at a 1.25x
Maximum LTV 7 year term or greater: 80%; 5 year term: 75%.
Rate Structure Floating-rate option available; borrower must purchase an interest rate cap from a third party cap provider.
Eligible Properties Multifamily. Cooperatives not allowed.
Eligible Borrower Single Purpose Entity.
Tax & Insurance Escrows Monthly deposits required. May be waived if certain criteria are met.
Replacement Reserves May be waived if certain criteria are met.
Recourse Non-recourse with standard exceptions for fraud and misrepresentation.
Commercial Space No more than 40% of effective gross income and no more than 40% of property’s total square footage.
Required Reports Appraisal, Properly Condition Assessment and Phase I Environmental, Zoning, Insect and Flood.
Prepayment Four main pre-payment options available with no premium for final 90 days.
Assumable Subject to approval and 1%.
Subordinate Financing Not allowed.
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.
Rate Lock Early rate-lock option available for varying durations, typically ranging from 60 to 120 days from rate-lock until Freddie Mac purchase; 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 2% of loan if over $5,000,000 amount due at rate lock for early rate-lock transactions, but refundable post-closing or post-purchase of the loan by Freddie Mac.

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