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.

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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.

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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.

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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

Ivan Kaufman on Secrets to Success: “Inside the ICE House”

Ivan Kaufman on Secrets to Success

Ivan Kaufman, the chairman and CEO of Arbor Realty Trust, Inc. (NYSE:ABR), was featured on Intercontinental Exchange’s “Inside the ICE House” podcast, hosted by Josh King. In an episode titled “Arbor Realty Trust CEO Ivan Kaufman Builds an Empire From Multifamily Homes,” Kaufman shared insights about entrepreneurship and multifamily trends in 2020.

Although COVID-19 has taken a severe toll on the economy, Arbor has continued its upward growth. In the second quarter of 2020, the REIT increased its core earnings and raised dividends for the ninth year in a row. Kaufman partly attributed the company’s success to its diversified income streams, including originating and servicing loans and owning real estate.

“Our core asset class is multifamily and that’s not by accident. Going through several recessions including the Great Recession, it was evident that the multifamily asset class is extremely resilient,” said Kaufman. That’s one of the key reasons why Arbor is the best performing mortgage REIT in the industry.

Arbor has adhered to its steadfast principles of maintaining strong fundamentals, while being nimble in innovating products and services. Kaufman explained that the CARES Act provided money, which enabled tenants to pay rent. This allowed borrowers to pay their mortgages and institutions to service their loans. Thus, the real estate market remained stabilized. As one example of its pioneering actions, with its borrowers, Arbor created a rental assistance program (ARAP) to supplement governmental assistance to tenants financially impacted by COVID-19.

Arbor’s chairman predicted technology will streamline processes, improve information and lower costs. Kaufman has observed significant increases in efficiency with electronic signatures and the elimination of duplicative data. “I wouldn’t be surprised if getting a multifamily loan in a year or two from now will go from 30 to 15 days. We’ll continue to see those kinds of improvements,” he stated.

With COVID-19’s disruptions, Kaufman provided a CRE perspective. He emphasized that 60% of asset classes, comprising multifamily, single-family rental and industrial, are performing extremely well. Other property types, such as retail, hospitality and offices, face different challenges.

For multifamily, depending on the location, Kaufman forecasted a slight decline in rent growth and occupancy, with flight to the suburbs. However, he commented, “That’s going to be offset by price appreciation because multifamily is such a strong investment asset class. With low interest rates, you’re going to see cap rates compress and values go higher.”

In the fourth quarter, multifamily purchase transactions will return to normal and refinancings will reach record levels, according to Kaufman. This portends additional future profitability for Arbor.

Yet the forward-thinking CEO refuses to rest on his laurels and has even greater aspirations for his company. “Our mission is to become fully vertical and to offer every product for multifamily, from investment sales all the way through servicing,” said Kaufman. “Whether it be equity, preferred equity, permanent debt, bridge products or construction lending, we will have a program over the next two to three years.”

For more on Kaufman’s business strategies, and his perspectives on the real estate industry and multifamily weathering the current economic storm, listen to the full podcast below and more of Ivan’s recent appearances in the news.

Learn about Arbor’s multifamily financing solutions for your investment goals. Contact Arbor today to speak with one of our origination specialists.