Current Reports

Single-Family Rental Investment Trends Report Q4 2023

Arbor’s Single-Family Rental Investment Trends Report Q4 2023, developed in partnership with Chandan Economics, explores a multifamily sector ending the year on a high note as demand climbs for quality single-family rental (SFR) homes. Even with interest rates high, more shovels went in the ground for SFR projects, increasing build-to-rent (BTR) construction’s market share to a new peak. In the third quarter, SFR’s robust rent collections and retreating cap rates also demonstrated the sector’s continued resiliency amid economic dislocation.

Press Releases

Arbor’s Servicer Ratings Affirmed and Positive Outlook Rating Assigned by Fitch

Fitch Ratings Recognizes Arbor’s Commitment to Excellence and Innovation Arbor Realty Trust (NYSE:ABR) NEW YORK, NEW YORK – November 29, 2023: Fitch Ratings has reaffirmed Arbor Multifamily Lending, LLC’s (Arbor) commercial primary and special servicer ratings, further solidifying Arbor’s position as a trusted partner in the multifamily lending industry. Concurrently, they have assigned a Positive Outlook to each rating, reflecting an unwavering commitment to excellence and innovation. Commercial primary servicer rating at ‘CPS2’; Outlook Positive; Commercial special servicer rating at ‘CSS3+’; Outlook Positive. “The assignment of the Positive Outlook reflects Fitch’s 12–24 month view on the trajectory of Arbor’s primary servicer rating, noting that as the new borrower website is fully realized and deployed and turnover within the primary servicing function continues to stabilize, positive rating movement is possible.” – Fitch Ratings Read more from Fitch about the key rating drivers behind this announcement. Direct inquiries to [email protected]. About Arbor Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial Read the full article…

Articles

Video: Special Report Fall 2023 Key Takeaways

In this video, Dr. Sam Chandan, Founding Director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and non-executive chairman of Chandan Economics, details the key takeaways of Arbor’s Special Report Fall 2023, which he co-authored with Ivan Kaufman, Chairman and CEO of Arbor Realty Trust.

Articles

FHFA Loan Caps for 2024: What Multifamily Borrowers Need to Know

The Federal Housing Finance Agency (FHFA) announced a $10 billion rollback of Fannie Mae and Freddie Mac’s volume cap for loan purchases for 2023 to $140 billion ($70 billion for each agency). This move aligns with industry expectations, given the anticipation of continued headwinds for the multifamily in 2024. Next year’s cap for the Government-Sponsored Entities (GSEs) is a reduction of approximately 7% from the $150 billion limit set for 2023 and a return to the level it was in 2021.

Current Reports

Affordable Housing Trends Report Fall 2023

With the cost of living climbing, the need for affordable housing has become more urgent. Although demand continues to outpace available supply, multifamily investment in affordable housing is fortified by Low-Income Housing Tax Credits (LIHTC), Project-Based Section 8, and the Housing Choice Voucher (HCV) programs. Arbor’s Affordable Housing Trends Report Fall 2023, developed in partnership with Chandan Economics, examines the supply-driven programs and policies designed to improve supply at a point in time when federal gridlock has stalled many funding increases.

GENERAL: 800.ARBOR.10

Home | Freddie Mac | Student Housing
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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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ARBOR.COM | 800.ARBOR.10
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