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.



Seniors Housing

Arbor’s Senior Housing Loan offers flexible loan terms for variety of seniors housing property types.

Loan Amount Minimum is $5,000,000, with exceptions on a case-by-case basis.
Loan Term 5-10 years (up to 30 years for fixed-rate loans).
Financing Options Acquisition or refinance loans, bond credit enhancement, Freddie Mac’s Revolving Credit Facility and Targeted Affordable Housing transactions.
Minimum DSCR 1.30x for independent living; 1.40x for facilities with an assisted living and/or Alzheimer’s component greater than 50%; coverage for properties contain any skilled nursing component is 1.45x.
Maximum LTV Maximum 75% of appraised value, maximum of 80% for tax-exempt bond finance transactions.
Rate Structure Fixed and adjustable rate options available.
Eligible Properties
  • Independent living properties
  • Assisted living properties
  • Memory care properties
  • Properties with a limited amount of skilled nursing (maximum 20% of NOI)
  • Any combination of the above
Eligible Borrowers/Borrowing Entity
  • Experienced owner/operator of comparable facilities
  • If the loan is less than $5 million, the borrower may be a Single Asset Entity (SAE) with some additional restrictions and may be a limited partnership, general partnership (no individuals may be general partners), limited liability company, corporation, or real estate investment trust (must be a corporation, not a trust)
  • If the loan is $5 million or more, the borrower may be a limited partnership, a corporation,
    or a limited liability company and must be a Single Purpose Entity (SPE)
  • If the borrower is structured as Tenancy In Common (TIC), each Tenant In Common must be a SPE
Eligible Loans
  • Fixed-rate loans
  • Standard and capped floating rate loans
  • Supplemental Loans (subject to requirements in the Loan Agreement) and other options
  • Other FMAC loan programs may be available on a waiver basis
Tax & Insurance Escrow Generally required.
Replacement Reserve Escrow Generally required.
Recourse Non-recourse with standard exceptions, including for fraud and misrepresentation.
Commercial Space No more than 20% of effective gross income and not more than 20% of property’s total square footage.
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 Defeasance for fixed-rate loans. Yield maintenance option available. Four main prepayment options available for floating-rate loans. No premium for final 90 days.
Assumable Subject to approval and 1% fee.
Subordinate Financing Not allowed.
Supplemental Loans Available Subject to requirements in the loan agreement and Freddie Mac.
Refinance Test No Refinance Test is necessary if the loan has an LTV of 55% or less and an amortizing debt coverage ratio of:

  • For Independent Living: ≥ 1.45x
  • For Assisted Living: ≥ 1.55x
  • For Assisted Living with Skilled Nursing Beds: ≥ 1.60x

All partial-term interest-only loans must pass the Refinance Test.

Pricing Tiered Pricing Matrix. More favorable pricing available for higher DSCR and lower LTV.
Rate Lock Standard 5 day rate lock period. Early Rate Lock (for fixed-rate loans) are available for extended periods, including Freddie Mac’s standard early rate-lock and index lock options.
Spread Hold Quoted loan spreads are held for 75 days from signed loan application, allowing sufficient time to close loans at quoted spreads and, if applicable, at index lock rates.
Freddie Mac Application Fee Greater of $5,000 or 0.15% of loan amount.
Arbor Application Fee Estimated at $25,000 for third-party reports.
Legal/Closing Fee Arbor’s legal fee estimated between $17,500 and $25,000.
Good Faith Deposit 2% of loan amount, due at rate lock, refundable post-closing.


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