Current Reports

Small Multifamily Investment Trends Report 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.

Articles

How Positive Rent Reporting Advances Borrowers’ and Renters’ Goals

Positive rent reporting, a new piece of Fannie Mae’s mission-driven lending agenda, is a leap forward for the U.S. rental housing market amid an ongoing affordability crisis. This initiative, recently launched in a pilot program in Chicago, has significant upside potential for not only tenants but landlords, owners, and multifamily borrowers as well.

Small Multifamily Investment Trends Report Q4 2022

Valuations Flatten as Cap Rate Start to Rise from Record Lows 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.   Key Findings: Small multifamily originations reached $80.7 billion in 2022, Read the full article…

Special Report: Spring 2023

Special Report: Spring 2023 The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.   Key Findings: The sustainability of consumer financing and Read the full article…

Investment

Arbor’s Special Report Spring 2023

The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.

Articles

Renting On Credit: New Platforms Modernize Monthly Multifamily Transactions

Until recently, full-scale optimization has skipped over the basic monthly rental payment transaction, with 78% of more than 100 million renters using paper checks. But now, two programs, backed by global leaders in financial services, are incentivizing tenants to pay the rent on credit, with perks like automatic credit reporting and points towards future purchases.

Articles

Top Markets for Renters Under 30

Renters 30 years of age and under, who now make up slightly more than one-quarter of the heads of households of rental units, are bolstering housing demand in markets known for their affordability and livability.

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.

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    • 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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