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.


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


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.


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.


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.

General: 800.ARBOR.10

Ivan Kaufman Discusses Arbor’s Strength and Diversification on The iREIT Podcast with Brad Thomas

The iREIT Podcast

Arbor Realty Trust’s CEO discusses diversified income streams, stock buybacks, and the state of regional bank CRE lending in this wide-ranging interview.

Arbor’s diverse business model differentiates it from other multifamily lenders, Founder, Chairman, and CEO, Ivan Kaufman told Brad Thomas, founder of Wide Moat Research, in an interview on the iREIT Podcast on June 16, 2023.

“We are actually more than a mortgage REIT,” said Kaufman, noting that Arbor has multiple income streams. “Not only are we a leading originator of loans that we hold in our portfolio like most mortgage REITs and create that spread, but we also have a variety of other businesses that work together that create multiple income streams and feed off of one another.”

Thomas pointed out that Kaufman’s belief in the strength of his company prompted him to initiate a stock buyback program this year.

“As everybody’s aware, there was this short report that was written on us … we knew fundamentally it was wrong, and we also knew fundamentally how solid we were as evidenced by the ability to increase our dividend by two cents and still have the lowest payout ratio in the industry.”

Kaufman saw an opportunity in Arbor’s undervalued stock price and had the liquidity and access to capital to purchase more shares.

“Our stock typically trades at an eight dividend,” he added. “An eight dividend is a $20, $21 stock price. So, we’re sitting at $10 and a quarter, and we’re like, ‘Okay, this is a no-brainer for a 50% return.’ When the market normalizes, that’s just incredible.”

Kaufman told Thomas that Arbor is well-positioned to increase its stature in the multifamily lending market following the failures of Silicon Valley Bank and Signature Bank in March.

“We used to have 10 regionals who would compete with us in that sector, [but today] we don’t have that competition. We’re a leader in that space, and we’re growing that book of business, and it’s a great book of business.”

Looking forward, Kaufman sees Arbor leading from a position of strength.

“I’m excited, and I’m excited because we lost the regional banks,” he said. “I lost a lot of competitors. We have a lot of liquidity, and the market’s going to be ours.”

Listen to the complete podcast.