Articles

Eight Common Commercial Real Estate Investor Questions

Whether you are just beginning your investing journey or are looking to take your portfolio to the next level, Arbor stands ready with our talented team and decades of expertise. Given our vast experience and national footprint of successful deals, we are familiar with many common commercial real estate investor questions, such as the ones answered in this article.

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Multifamily is Well-Positioned for Short- and Long-Term Growth

With the macroeconomy maintaining its underlying strength and a handful of rate cuts expected by the Fed within the next 18 months, green shoots of optimism within the multifamily sector are multiplying. Even as high interest rates impede normal operations, stabilization is underway while the sector’s long-term prospects remain unwavering. In this deep dive, our research teams will explore the tailwinds underpinning the multifamily sector’s short- and long-term outlook.

Refinance of Existing HUD-Insured Loan

FHA® Interest Rate Reduction (IRR) Refinance of Existing HUD-Insured Loan   Arbor provides this program to reduce the interest rate on qualified existing HUD-insured multifamily loans. The HUD-insured loan remains in place, with reduced payments based on the new rate, the current balance, and the remaining term. The existing prepayment penalty must be paid in full. V041624

Mortgage Insurance for Rental Housing for Urban Renewal and Targeted Redevelopment

FHA®220 Mortgage Insurance for Rental Housing for Urban Renewal and Targeted Redevelopment*   Arbor provides FHA-insured, long-term, fixed rate financing for new construction and substantial rehabilitation of multifamily projects nationwide. This program provides for both construction and permanent financing for projects in urban renewal areas and other areas where local governments have undertaken designated revitalization activities. Applications are typically processed in two stages (preliminary application followed by firm application). Affordable/rental assisted projects and HUDexperienced development teams may request a “straight to firm” application, saving significant time by eliminating the preliminary application stage. V020224

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Regional Construction Trends: Annual Multifamily Completions Surged in the South and West

After the volume of newly issued multifamily permits hit a 37-year high in 2022, multifamily completions surged another 22.3% last year. As the sector continues to gain strength, its growth has remained concentrated in the southern and western regions of the country, according to an analysis of new data from the U.S. Census Bureau’s Survey of Construction.

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The Evolving Characteristics of Multifamily Construction

During the post-global financial crisis (GFC) cycle, a disproportionate share of new multifamily construction was of high-rise units in properties with amenities. However, the tides have turned. The rising cost of homeownership has brought the need for more affordable housing development in the U.S. to the top of many legislative agendas. In this deep dive, our research teams utilize data from the U.S. Census Bureau’s Annual Survey of Construction to show how and why the characteristics of new multifamily properties continue to evolve alongside shifting market needs.

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Video: Growing LGBTQIA+ Visibility in the CRE Industry

LGBTQIA+ Pride Month is recognized in June, but its lessons are timeless. During a recent conversation between Tres Seippel, Director, Construction Management at Arbor, and Dr. Sam Chandan, Founder of Chandan Economics, Founding Director, NYU Chen Institute for Global Real Estate Finance, and Co-Chair of the Real Estate Pride Council, Seippel shared why it is more important than ever for the industry to embrace visibility and show support for employees who identify as LGBTQIA+ or other diverse backgrounds.

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Ivan Kaufman Discusses Arbor’s Record Performance in 2020 on The Ground Up Podcast

Ivan Kaufman on The Ground Up Podcast

Arbor Realty Trust’s CEO reveals how the company achieved record originations and dividend growth despite the pandemic

While many companies experienced a dislocation in 2020, Arbor Realty Trust was able to achieve a record performance, setting itself apart from competitors, noted Ivan Kaufman, the founder, chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), in an interview on The Ground Up podcast with Brad Thomas.

In fact, 2020 marked one of Arbor’s best years as a public company, raising its dividend three times during the year and marking the ninth straight year of dividend growth for the company.

In the interview, Kaufman explains how Arbor was so well prepared for the pandemic.

“We had the proper liability structures and more significantly, we’re a very diversified mortgage REIT. Our income streams come from multiple sources,” Kaufman noted.

As a result, Arbor was able to take advantage of opportunities in the market, achieving record originations of $9.1 billion in 2020, a 20% increase over 2019.

Kaufman also attributed Arbor’s success to it sustainable business model and its focus on multifamily housing, one of the industry’s most resilient asset classes.

The multifamily industry is backed by the government-sponsored agencies, meaning “the market is very stable even through a dislocation,” Kaufman noted. As a leading lender for Fannie Mae, Freddie Mac and FHA multifamily loans, Arbor was able to take advantage of the opportunity to provide liquidity throughout the pandemic.

Arbor’s balance sheet is also supported by a significant servicing portfolio, which grew to nearly $25 billion in 2020.

The head of the publicly traded REIT noted that Arbor’s adequate capital and preparation going into the pandemic is now paying off.

“Combined with our dividend increases, we’re very optimistic about our opportunity to continue to grow and increase our dividend and increase shareholder value,” Kaufman said. He added that he’s confident Arbor will join the elite club of public companies with 10 straight years of dividend growth in 2021.

Watch the full interview here.