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Research

How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

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Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…

GENERAL: 800.ARBOR.10

Home | Mezzanine / Preferred Equity

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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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

  • Structured Financing Mezzanine Loan Program Term Sheet

    Arbor’s mezzanine financing products give owners access to more capital than available through conventional financing. Arbor’s products can be used in conjunction with new or existing mortgage loan financing.

    • Download PDF | Email

    • LOAN AMOUNT

      $8M

    • LOAN TERM

      Generally, 1 to 3 years

    • AMORTIZATION

      Interest only or fixed principal pay downs

    • MINIMUM DSCR

      1.10 through the mezzanine debt service

    • MAXIMUM LTV

      Up to 90%

    • INTEREST RATE

      Floating rate over CME SOFR index or Fixed; rates vary based on risk profile, business plan, sponsorship, and other terms

    • ELIGIBLE PROPERTIES

      Well-located existing multifamily and new multifamily construction located in strong markets with positive demographic, population, and employment trends

    • ELIGIBLE BORROWER

      Single-asset entity

    • SPONSORSHIP

      Established track record with appropriate net worth and liquidity commensurate with transaction

    • 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

    • REQUIRED REPORTS

      Appraisal, Property Condition Assessment, Phase I Environmental

    • PREPAYMENT

      Generally permitted

    • LENDER FEE

      Origination and exit fees to be determined

    • V060122

  • Structured Financing Preferred Equity

    Arbor’s preferred equity products give owners access to more capital than available through conventional financing. Arbor’s products can be used in conjunction with new or existing mortgage loan financing.

    • Download PDF | Email

    • Loan Amount

      $8 M minimum

    • Loan Term

      Generally 1 to 3 years

    • Amortization

      Interest only or fixed principal pay downs

    • Minimum DSCR

      1.10

    • Maximum LTV

      90%

    • Interest Rate

      Floating rate over CME SOFR index. Spread varies based on risk and terms

    • Eligible Properties

      Well located existing multifamily and new multifamily construction located in strong markets with positive demographic, population and employment trends

    • Eligible Borrower

      Single asset entity

    • Sponsorship

      Good overall credit with sufficient liquidity and demonstrated experience completing similar transactions

    • Security

      Preferred equity position in the borrower’s organizational structure; additional credit enhancement (recourse, other collateral, letter of credit or other guarantees) to be determined

    • Required Reports

      Appraisal, Property Condition Assessment, Phase I Environmental

    • Prepayment

      Generally permitted

    • Lender Fee

      Origination and exit fees to be determined

    • V060122

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