Articles

FHA Loan Changes Boost Access to Affordable and Market-Rate Multifamily Financing

The U.S. Department of Housing and Urban Development (HUD) recently announced that new Federal Housing Administration (FHA) rules designed to boost housing production are now in effect. The new rules bring more favorable debt service coverage ratios (DSCRs), loan-to-cost ratios (LTC), and loan-to-value (LTV) ratios on certain types of FHA multifamily loans, unlocking more proceeds to borrowers.

Analysis

U.S. Multifamily Market Snapshot — February 2025

The U.S. multifamily sector finished 2024 with the wind at its sails, as the market settled into a more normalized cycle. Rental demand continued to be driven by solid wage growth and household formation, as well as high home prices leading many would-be-homebuyers to consider lifestyle renting.

Articles

FHA Multifamily Case Study: Closing Loans Amid Uncertainty

In times of volatility, it pays to have support from a team willing to go the extra mile. Whether it’s meeting tight deadlines or ensuring all requirements are met, Arbor’s Federal Housing Administration (FHA) Underwriting department remains committed to helping borrowers secure loans that expand rental housing opportunities for Americans.

Analysis

Top U.S. Multifamily Rent Growth Markets — Q4 2024

The U.S. multifamily market held steady in a more normalized cycle during the third quarter of 2024. Rental demand remained strong, while new leaders emerged among the top markets for rent growth.

Articles

CREFC Miami 2025: Young Professionals Network Fosters Career Growth

Networking and attending industry conferences to learn trends and insights are among the most advantageous ways young commercial real estate finance professionals can advance in their careers. This year, Gabriel Rondon, Analyst, Structured Asset Management at Arbor and a CRE Finance Council (CREFC) Young Professionals Network member, was selected as one of the network’s ambassadors at CREFC Miami, giving him a golden opportunity to expand his professional horizons.

Articles

The Single-Family Rental Sector Returns to Growth Mode

Although the single-family rental (SFR) sector’s profile expanded after the 2007-2010 subprime mortgage crisis, the number of its households slid between 2016 and 2020 as many rentals transitioned into owner-occupied homes. Following a period of pandemic-related uncertainty, SFR has returned to growth mode, increasing its number of households for the second time in three years.

Investment

Special Report Spring 2025: Optimism on the Rise

Arbor’s Special Report Spring 2025, developed in partnership with Chandan Economics, covers the state of the U.S. rental housing market on the cusp of a new cycle. After a year of steady growth, favorable trends put wind in the sector’s sails, giving rise to budding optimism. With the economic landscape shifting, the rental housing market’s resilient performance in 2023 and 2024 provides a solid foundation for continued growth.

Analysis

Affordable Housing Market Snapshot — Winter 2024-2025

Continually challenged by low inventory, affordable housing sits at a crossroads following the 2024 election. Incoming leadership plans to introduce market-based principles to an agenda that may also include an expanded Housing Choice Voucher program.

General: 800.ARBOR.10

Commercial/Multifamily Briefs From Arbor, Cushman & Wakefield

Commercial and Multifamily Briefs From Arbor and Cushman and Wakefield

Eastern Union Offering 20 Paid Internships in Data Analytics, Research; Zoom Information Session June 7

Eastern Union, New York, is offering paid internships in data analytics and research, one of the most in-demand skills in today’s business marketplace.

Under the hands-on tutelage of company president and co-founder Ira Zlotowitz and the company’s team of data researchers, 20 paid interns will take part in a 36-hour remote training course in data analytics. The company will then hire at least one graduating intern on a full-time basis, in addition to up to fifteen on a commission basis.

The worldwide data analytics marketplace is on pace to nearly triple by 2027, a March 2020 report from ResearchAndMarkets.com found. The analysis found that demand, which stood at $37.34 billion in 2018, would increase by 281 percent to $105.08 billion within nine years.

The growth of the big data analytics research market is being driven by “the rapidly increasing volume and complexity of data…due to growing mobile data traffic, cloud-computing traffic, and burgeoning development and adoption of technologies including IoT [the internet of things] and AI [artificial intelligence],” ResearchAndMarkets.com said.

Businesses use data analytics to think more strategically — and to analyze and solve a wide spectrum of business problems. There are four primary types of data analytics: descriptive, diagnostic, predictive and prescriptive analytics.

The 36-hour remote internship program begins on Monday, June 14. Eastern Union is hosting an obligation-free “open house” via Zoom on Monday, June 7 from 12:00-12:30 PM ET.

For more information about the paid internship initiative, visit this link. This opportunity is open to all U.S. citizens.

CREtelligent Launches Automated Valuation Model for Commercial Properties

CREtelligent.com and Black Knight subsidiary Collateral Analytics launched a Commercial Automated Valuation Model.

CREtelligent said it can now deliver an estimated property value to a commercial real estate professional in less than 30 seconds.

“In the business of commercial real estate, knowing the value of your assets at any point in time gives you an advantage and can be instrumental in managing risk and maximizing returns,” said Anthony Romano, CEO of CREtelligent. “In some situations, speed is important, and the time and cost of a full appraisal is not an option.”

Romano noted the CAVM is not Uniform Standards of Professional Appraisal Practice-compliant or intended to replace an appraisal but can be used to make or support value assumptions. Automated valuation models have been used for decades in the residential market and have grown in popularity in commercial market in recent years.

The CREtelligent CAVM provides an instant estimated property value or probable price and includes comparables used with low, high, mean and median ranges. Property information includes loan, tax, sales history, market statistics, rental prices, net operating incomes, rent rolls and more. A CAVM can be generated for a single property or a portfolio and can be used on any property type: multifamily, industrial, retail or office.

Romano said the company plans to further its offerings in the valuation space, noting that commercial evaluations and broker price opinions are valuation reports the company currently provides on its RADIUS platform.

REIT Earnings Recovery Slows in First Quarter
After two consecutive quarters of double-digit growth, real estate investment trust earnings recovery slowed in the first quarter of 2021.

The Nareit Total REIT Industry Tracker Series report found funds from operations for all equity REITS rose 2.0 percent to $14.0 billion.

“Different parts of the economy are reopening at different speeds, and REIT performance by property sector reflects this variation,” said Calvin Schnure, Nareit Senior Economist. “The recovery is broadening with the vaccine rollout, however, and prospects for improvement have gone from ‘if’ to ‘when’.”

FFO for industrial REITs rose 15.7 percent to $1.5 billion, a record high. The retail sector–one of the sectors hardest hit by the pandemic–reported a 5.5 percent rise in FFO, and has recovered more than a third of the decline in FFO that occurred during the 2020 spring economic shutdowns.

Regional malls saw the greatest increase in FFO, up 14.5 percent, Nareit reported. FFO for shopping centers rose 7.8 percent while FFO for free-standing retail fell 9.9 percent. The office sector showed continued declines in the first quarter while lodging/resorts reported negative FFO for the fourth consecutive quarter.