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.

Articles

The Probability Renters Will Keep Renting Hits Record High

The average renter thinks there is a three-in-five chance they will still be in the rental market in 2027, according to the New York Federal Reserve’s recently released 2024 SCE Housing Survey. Compared to last year, the probability of the average renter not becoming a homeowner in the next three years was up 4.3 percentage points, reaching its highest mark since the study began in 2015.

Current Reports

Small Multifamily Investment Trends Report Q2 2024

Small multifamily’s performance continues to conform to pre-pandemic norms typically seen before the historic boom years of 2021 and 2022. In the first quarter of 2024, cap rates and asset prices both improved quarter-over-quarter, Arbor’s Small Multifamily Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, has found. The subsector’s fundamental strength will support steady growth amid tight credit conditions until interest rate relief invites increased investment activity.

Analysis

U.S. Multifamily Market Snapshot — May 2024

Key fundamentals of the U.S. multifamily remained strong to start 2024. Despite fears of oversupply, rent growth remained stable and vacancy rates remained near historical lows.

Articles

Arbor Marketing Campaign Wins Two Awards at Industry Gala

For more than 30 years, Arbor has been committed to building strong bonds with clients that lead to mutual success. This philosophy is at the heart of a unique Arbor marketing campaign, The Art of Growing Financial Partnerships, which received two awards at the 30th Annual Financial Communications Society (FCS) Portfolio Awards Gala in New York City on May 2. The campaign, which was featured in two private jet terminals, used original stained-glass pieces to build brand awareness among high-net-worth travelers.

Articles

Top SFR Annual Rent Growth Markets

Even as rents retreated elsewhere, single-family rentals (SFR) have continued to outperform all other housing sub-types, exceeding the all-property type national average in 17 consecutive months through February 2024, according to Zillow’s Observed Rent Index (ZORI). Annual SFR rent growth has seen substantial gains in many metropolitan areas since national rent growth peaked in March 2022. In this deep dive, the Chandan Economics and Arbor Realty Trust research teams pinpoint the metropolitan areas where SFR rents are rising the fastest.

General: 800.ARBOR.10

FREDDIE MAC®

Student Housing

Arbor’s Student Housing financing product provides attractive terms and competitive prices for the purchase or refinance of properties that, because of construction and location, specifically cater to a student tenant base and may or may not be readily convertible to conventional multifamily housing.

Eligible Borrowers
  • Borrower may be a limited partnership, corporation, limited liability company or a tenancy in common (TIC) with 10 or fewer tenants in common
  • General partnerships, limited liability partnerships, real estate investment trusts (REITs) and certain trusts may also be acceptable in limited circumstances, subject to additional requirements
  • Borrower must generally be a Single Purpose Entity (SPE); however, on loans less than $5 million, upon borrower’s request, a borrower other than a TIC may be a Single Asset Entity instead of a SPE
  • If the borrower is structured as a TIC, each tenant in common must be a SPE
Eligible Property Types
  • Purpose-built student housing properties; must have a minimum of one bathroom for every two bedrooms and each apartment must have a separate
  • Stabilized garden, mid-rise and high-rise apartment properties that are greater than 50% occupied by student tenants
  • Supporting college/university has 10,000 or more students; student housing properties located within close proximity to multiple schools that have a combined student body of 8,000 students or more will be considered
  • Property is located less than two miles from college/university or on a public transportation route
Loan Amount $5 million to $100 million (larger and smaller loans will be considered)
Loan Term 5 to 10 years (up to 30 years for fixed-rate loans if loan is not purchased for securitization)
Maximum Amortization 30 years
Financing Options Acquisition or refinance
Ground Lease Ground lease for land owned by a college or university may be permitted with prior approval
Lease Parameters
  • Individual tenant lease by the apartment, bedroom or by the bed
  • Rent under a master lease may be permitted with prior approval/li>
Lease Terms 12-month lease is preferred, although a shorter lease (of nine months or more) will be considered
Lease Guaranty Parental guaranty is preferred
Minimum DSCR 1.30x / 1.35x / 1.40x / 1.45x (Refer to: Student Housing Loan (freddiemac.com) for grid)
Maximum LTV 65% / 70% / 75% / 80% (Refer to: Student Housing Loan (freddiemac.com) for grid)
Tax & Insurance Escrows Generally required
Replacement Reserve Deposit Generally a minimum of $150 per bedroom or $300 per unit
Recourse Requirement Nonrecourse except for standard carve-out provisions
Supplemental Loans Available subject to requirements in the Loan Agreement and current Freddie Mac program and product requirements at the time of the supplemental loan request
Exclusions Residence halls or other multiple occupancy rooms with a shared common bathroom and centralized food service areas or dining halls
Early Rate-Lock Options (For Fixed-Rate Loans) Early rate-lock and Index Lock options available
Refinance Test No Refinance Test is necessary if the loan has an amortizing debt coverage ratio (DCR) of 1.40x or greater and a loan-to-value (LTV) ratio of 60% or less
Application Deposit Greater of $2,000 or 0.1% of loan amount

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