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Mezzanine/ Preferred Equity
Arbor’s mezzanine and preferred equity financing products provide owners with greater proceeds than are available through conventional financing.
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Structured Financing® Mezzanine
Unique Arbor Advantages
• Easily combines with other ARBOR loans for an efficient one-stop shop experience
• Arbor’s long-standing track record and industry experience allow us to act quickly and creatively
• Certainty of execution
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LOAN AMOUNT
Generally $3,500,000 minimum. No maximum.
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LOAN TERM
Generally 1 to 5 years.
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AMORTIZATION
Interest-only or fixed principal paydowns.
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MINIMUM DSCR
1.10x through the mezzanine debt service.
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MAXIMUM LTV
Up to 90%.
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INTEREST RATE
Floating rate over LIBOR index or fixed. Rates vary based on risk profile, business plan, sponsorship, and other terms.
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ELIGIBLE PROPERTIES
Multifamily, office, retail, and student housing projects located in strong markets with positive demographic, population and employment trends.
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ELIGIBLE BORROWER
Single Asset Entity.
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SPONSORSHIP
Established track record with appropriate net worth and liquidity commensurate with transaction.
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SECURITY
Pledge of ownership interests secured by UCC or preferred equity position. Additional credit enhancement (recourse, other collateral, letter of credit or other guarantees) to be determined.
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REQUIRED REPORTS
Appraisal, Property Condition Assessment, Phase I Environmental.
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PREPAYMENT
Generally permitted.
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LENDER FEE
Origination and exit fees to be determined.
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