How Multifamily Property Renovations Add Value and Marketability

The ideal time to renovate is when the rental market is strong. With high occupancy rates, borrowers are more likely to quickly realize returns on their multifamily property renovations through higher rents. However, renovating during a market downturn, when rents are often cheaper, inventory is higher, and materials are more affordable, is also a sound strategy.

Current Reports

Single-Family Rental Investment Trends Report Q2 2024

Quarter after quarter, the single-family rental (SFR) sector reaches new heights. From new construction to cap rates, Arbor’s Single-Family Rental Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, details how the sector’s healthy fundamentals create profound optimism in its long-term prospects.


Arbor Sponsors Smile Farms Golf Outing Supporting Local Employment Opportunities

Arbor, which takes pride in helping employees reach their full potential, was honored to sponsor and participate in Smile Farms’ 10th Anniversary Golf Outing on May 20 at the Plandome Country Club on Long Island, NY, benefiting the Long Island-based organization dedicated to advancing opportunities for people with disabilities.


New York State’s 2025 Budget Advances Affordable Housing Goals

In April, New York State Governor Kathy Hochul announced a landmark budget agreement heralded as a giant step for affordable housing. New York’s FY 2025 Enacted Budget includes several key policy changes that could create thousands of affordable housing units across the state.


SFR East 2024: How Economics and Demographics Shape the Rental Market

IMN’s Single Family Rental Forum (East), the cornerstone gathering of the SFR industry, concluded on May 22, 2024, in Miami, FL. Over three days, 1,800 attendees listened to more than 280 speakers discuss all angles of the SFR industry. On the first day of the conference, Arbor’s Tres Seippel, Director, Construction Management, participated in a wide-ranging panel discussion examining economic and demographic forces influencing SFR and build-to-rent (BTR), which also featured Rick Dalton, President of the Dalton Group, Domonic Purviance of the Federal Reserve Bank of Atlanta, Wade McGuinn, CEO of McGuinn Hybrid Homes, and Heather Williams, VP at Willow Bridge Property Company.


Affordable Housing Market Snapshot — May 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. With more funding on the way, policymakers and private market advocates are pressing ahead with plans to add units to an increasingly tight housing market.

General: 800.ARBOR.10

Ivan Kaufman Discusses Historical Strength of Multifamily During Recessions in NYSE Interview

Ivan Kaufman talks multifamily in NYSE Floor Talk interview

Arbor Realty Trust’s CEO explains what differentiates Arbor from other REITs.

View the NYSE interview.

Ivan Kaufman, the founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), on the New York Stock Exchange program “Floor Talk,” provided insights about how Arbor has become one of the largest and most successful Fannie Mae and Freddie Mac licensed multifamily lenders in the United States.

COVID-19 has wreaked havoc in various CRE sectors and businesses. But undaunted by the pandemic, Arbor has continued to perform exceptionally well. Kaufman credited his senior management team members, who have worked with him for an average of over 25 years. Having weathered multiple market cycles, Arbor’s seasoned professionals know how to react and lead in times of unanticipated crises.

“It’s not when you get into a crisis what you do. It’s how you prepare for a crisis,” Kaufman stated. As Ivan recently discussed at his appearance in the NYU Capital Markets Leadership Series, Arbor anticipated the economic downturn despite the real estate market previously experiencing a historically extensive period of growth.

“Could we see COVID? No, but we did see a recession,” he said. “So, we had a lot of liquidity. We were in the right asset class. Our liability structures are outstanding. We were well prepared and could absorb quite a dislocation.”

The program host, Judy Shaw, asked what differentiates Arbor from its competitors.

Kaufman replied that Arbor has a variety of businesses. It earns income on interest and is also an operating company. It’s one of the largest government agency lenders in the country. Arbor’s servicing revenue is derived from an over $25 billion portfolio, producing consistent, reliable and recurring income for many years.

The corporation also receives gain on sales, has a thriving origination business, and earns interest from escrow balances. After experiencing multiple cycles, Arbor strategically focused its lending on multifamily and single-family rental (SFR) assets.

Kaufman pointed out that multifamily historically has shown resilience, even with the Great Recession, especially compared to other sectors. “It bounced back much more quickly, and the values continued to climb post-financial crisis,” he commented.

As seen in our Q3 Small Multifamily Investment Trends Report, even with the COVID-19 crisis, multifamily has maintained its strength with low vacancies and high rent collections.

“During the last 10 years, we experienced unprecedented rent growth of approximately 5% per year,” said Kaufman. “While the outlook is not as robust going forward, it’s still a great asset class with solid fundamentals and is expected to continue to perform well.” He projects future growth in value for the multifamily sector, noting low interest rates and cap rate compression.

Industrial and self-storage asset classes have also performed well throughout the coronavirus disruption. However, the real estate expert predicts difficult challenges still lie ahead for hospitality and that retail will undergo significant adjustments. Kaufman also forecasts softness in the office sector but added this will offer opportunities.

View the NYSE interview.


Check out Arbor in the News for discerning multifamily insights. Contact Arbor today to learn how our wide array of solutions can assist your strategic goals.