Current Reports

Single-Family Rental Investment Trends Report Q1 2023

Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds. Last year, investors purchased more single-family rental (SFR) units than in 2021 as uncertainty rippled through the commercial real estate industry. Construction in the sector also ramped up in 2022, with starts reaching all-time highs by unit count and market share. This upward trend, fueled by significant structural support, sets SFR apart from many other commercial real estate sectors.

Articles

Top Counties for Demographic Tailwinds

When apartment investors consider locations for capital deployment, growth potential is a top-of-mind concern. On a local level, population changes can influence everything from rent growth to occupancy to future property values. County-level positive net migration and natural population growth trends, identified in an analysis of U.S. Census Bureau data, reveal the counties where demographic tailwinds make a compelling case for real estate investment.

Single-Family Rental Investment Trends Report Q1 2023

Investor Purchases, New Starts, and Tenant Performance Show Strength as Cap Rates Rise Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds.   Last year, investors purchased more single-family rental (SFR) units than in 2021 as Read the full article…

Articles

Affordable Housing Market Snapshot — Spring 2023

Arbor’s latest Affordable Housing Trends Report, developed in partnership with Chandan Economics, offers a wide-ranging lens into the complex, though critically important, affordable and workforce housing sectors.

Articles

Seven Facts about FHA Multifamily Loans for Affordable Housing

The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), is one of the largest mortgage insurers in the world. The agency insures mortgages on affordable housing, multifamily properties, single-family homes, multifamily properties, and health care facilities. Since 1934, FHA has financed over 50,000 multifamily mortgages nationwide. Whether you’re interested in acquiring, refinancing, or rehabilitating an affordable housing property, FHA multifamily loans are a financing route you need to know about.

Articles

Video Analysis: Arbor’s Affordable Housing Trends Report Spring 2023

In this video, Sam Chandan, professor of finance and Director of the Chen Institute for Global Real Estate Finance at the NYU Stern School of Business, discusses the key findings of Arbor’s Affordable Housing Trends Report Spring 2023, developed in partnership with Chandan Economics. He adds context to the Federal, state, and local housing policy trends impacting the future of the affordable sector, which, he notes, continues to have the highest development prospects of any residential subtype.

Current Reports

Small Multifamily Investment Trends Report Q1 2023

The small multifamily subsector, strengthened by sound structural fundamentals, is well-positioned to face distress due to interest-rate pressure. Even though pricing has slid lower and cap rates have risen, it should remain resilient in the coming quarters. A deep dive into a uniquely positioned subsector, Arbor’s Small Multifamily Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, analyzes the competing headwinds and tailwinds influencing investment performance.

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

      $4M – $10M

    • 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

      85%

    • INTEREST RATE

      12% – 14%

    • 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

    • V010523

  • 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

      $4M – $10M

    • Loan Term

      Generally 1 to 3 years

    • Amortization

      Interest only or fixed principal pay downs

    • Minimum DSCR

      1.10

    • Maximum LTV

      85%

    • Interest Rate

      12% – 14%

    • 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

    • V010523

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