Aging Baby Boomers Reshape the Housing Market

While the 2008 financial crisis prompted a cyclical shift in U.S. housing — impacting everything from home prices to who can qualify for a mortgage — an equally impactful demographic change was just taking shape. The unprecedented wave of Baby Boomers that began retiring would disrupt the balance of the housing market.


Secondary and Tertiary Markets Gain Ground on Primary Cities

As secondary and tertiary markets continue to gain parity with larger primary cities around the nation, they offer investors a significant potential for return on investment, even as the U.S. and global economic landscapes face notable headwinds.


Small Multifamily Investment Snapshot — Q4 2022

The small multifamily sub-sector ended 2022 on a high note with originations falling just behind 2021’s peak. As economic storm clouds continue circling, small multifamily appears fortified from any reverberations that may result.

Press Releases

Arbor Realty Trust Reacts to Ningi Research Report

UNIONDALE, N.Y., March 14, 2023  (GLOBE NEWSWIRE) – Arbor Realty Trust (NYSE: ABR), announced today that the Company is in receipt of the purported “research” report that was published earlier today by Ningi Research, a short seller of Arbor stock. The report lacks merit and contains numerous inaccuracies, misstatements, and otherwise misleading allegations. This false Read the full article…


Arbor’s Leah Fisher Joins Global Sustainability Panel at InnovateESG

Arbor Senior Vice President, Special Projects, Governance and Risk, Leah Fisher recently spoke on a thought-provoking panel discussion at InnovateESG 2023, a conference focused on environmental, social, and governance missions, hosted by NYU Stern’s Chen Institute for Global Real Estate Finance.


Single-Family Rental Investment Snapshot — Q4 2022

SFR will maintain exposure to the cyclical disruption brought on by the housing market’s softness and rising interest rates, even though its structural growth outlook remains positive and unchanged.



Lease-Up Loan

Arbor’s Freddie Mac Lease-Up Loan product allows newly constructed properties to lock in a rate and fund a loan before the collateral is fully stabilized.

Description Refinance Lease-Up – Refinancing for newly constructed properties
Acquisition Lease-Up – Acquisition financing for newly constructed properties
Loan Amount Typically $10M and up
Loan Terms 5-10 years
Loan Types Fixed- and floating-rate loans; Interest-only (I/O) available during lease-up period
Eligible Property Types
  • Well-constructed properties exhibiting strong lease-up trends in good locations and strong markets
  • Student housing and manufactured housing community transactions are not eligible
  • Stabilization expected within 12 months of closing
Eligible Borrowers Borrowers must have experience with new construction or lease-up properties and generally have strong financial capacity and real estate management expertise with good performance and credit history
Amortization 30 years
Minimum DCR
  • 1.30x (Conventional and Targeted Affordable)
  • 1.35x (Seniors Housing with Independent Living)
  • 1.45x (Seniors Housing with Assisted Living)
Maximum LTV (as-stabilized)
  • 75% for Refinance Lease-Up (Conventional and Targeted Affordable)
  • 70% for Refinance Lease-Up (Seniors Housing with Independent Living or Assisted Living
  • 70% for Acquisition Lease-Up (Conventional, Targeted Affordable Seniors Housing with Independent Living or Assisted Living)
Minimum Cash Equity Requirement
  • 15% for Refinance Lease-Up (Conventional and Targeted Affordable)
  • 20% for Refinance Lease-Up (Seniors Housing with Independent Living or Assisted Living)
  • 25% for Acquisition Lease-Up (Conventional, Targeted Affordable and Seniors Housing with Independent Living or Assisted Living)
Lease-Up Credit Enhancement Requirements
  • Lease-Up Credit Enhancement is required for all Lease-Up transactions
  • The form of the Lease-Up Credit Enhancement will be determined by Freddie Mac
  • The Lease-Up Credit Enhancement must be at least 5% of the unpaid principal balance (10% if the Lease-Up Credit Enhancement is a guaranty, subject to additional conditions)
  • Release of Lease-Up Credit Enhancement will occur once the property has achieved the required amortizing DCR based on average performance of the past 3 months, net rental income for the past 1 month meets or exceeds the level necessary to reach the required amortization DCR, and met other standard conditions as set forth by Freddie Mac
  • If the required DCR is not reached within 12 months, the Lease-Up Credit Enhancement will be used to resize the loan and recast the payments
Appraisal Report Must provide the “as-is” and “as-stabilized” value for the property
Closing Debt Service Escrow An additional 3-month debt service escrow may be required based on the property’s actual operations at underwriting
Rate Lock
  • 50% occupied
  • 60% leased
  • 60% or more Certificates of Occupancy issued
Premier Sponsors & Markets Except for Seniors Housing, additional flexibility is available on a case-by-case basis through an assessment of the sponsor and market as determined by Freddie Mac
  • 1.05x DCR (Refinance Lease-Up) and 1.0x DCR (Acquisition Lease-Up)
  • 65% occupied
  • 75% leased
  • 100% of Certificates of Occupancy issued (Conventional and Targeted Affordable)
  • 90% of Certificates of Occupancy issued (Seniors Housing with Independent Living or Assisted Living)
  • Assisted Living properties must have all required licenses authorizing operations


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