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How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

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GENERAL: 800.ARBOR.10

Arbor Closes Puerto Rico’s First Multifamily HUD Loans Since Hurricanes Irma & Maria

UNIONDALE, NY (April 2, 2018)Arbor Realty Trust, Inc. (NYSE: ABR), a real estate investment trust and national direct lender specializing in loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets, announced the recent funding of $11.8 million in FHA 223(f) cash-out refinancing for Villa Blanca, Sagrado Corazon, and Villas De Humucao – three multifamily properties located in Puerto Rico.

Robert Mendeles, Structured Finance Originator at Arbor, arranged financing for the properties. With these closings, Arbor and Mendeles have closed nine FHA multifamily loans in Puerto Rico.

“The closing of these FHA loans demonstrates that Arbor and HUD are committed to keeping clean, safe and affordable housing options accessible to our fellow countrymen and women during this ongoing recovery period,” Mendeles said.

  • Villa Blanca is located in Puerto Rico’s Caguas municipality and was constructed in 1983. The low-rise community features 100 rental assistance units, a basketball court and controlled access. The property received a new $4.4 million loan that significantly reduced the interest rate.
  • Sagrado Corazon is located in Puerto Rico’s Ponce municipality and was constructed in 1981 and features 84 rental assistance units. The mid-rise property renewed its HAP contract for an additional 20 years allowing it to secure FHA’s lowest MIP. The new $2.1 million loan significantly lowered the interest rate.
  • Villas De Humacao is located in Puerto Rico’s Humacao municipality and was built in 1983. The low-rise community features 120 rental assistance units situated on a 6.9-acre site. The property received a new $5.3 million loan that significantly reduced the interest rate.

The three transactions were structured with fixed-rate, 35-year loan terms. All three properties are 100% occupied and with rents secured long-term by the U.S. Department of Housing and Urban Development’s (HUD) Housing Assistance Payment Program (HAP).

Having already closed six FHA loans on the island, Arbor was well situated to work with the borrowers and HUD to navigate the process under very stressful times.

“Arbor’s deeply rooted expertise in FHA lending is what enabled us to successfully close the first multifamily HUD loans in Puerto Rico since hurricanes Irma and Maria devastated the island,” said Jeffrey Allshouse, Senior Vice President, FHA Sales at Arbor. “While these financings are just small steps in supporting continuing recovery efforts, we are committed to finding flexible funding solutions to ensure that multifamily operators have the capital on hand to keep their properties fully occupied.”

Arbor worked in tandem with Puerto Rico-based Federico Gomez-Hernandez of FEGH Capital to structure the transactions.

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About Us
For over 20 years, Uniondale, NY-based Arbor Realty Trust, Inc. (NYSE: ABR) has been helping multifamily and commercial real estate clients achieve their financial goals by focusing on growing long-term relationships and conducting business as not simply another real estate lender, but a partner. We value our clients to such an extent that we’re more comfortable calling them partners, and their relationships with Arbor are the foundation of our business.

Founded by Chairman and CEO Ivan Kaufman, Arbor Realty Trust, Inc. is a real estate investment trust and direct lender specializing in loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. Arbor is a Top 10 Fannie Mae DUS® Multifamily Lender by volume and a Top Fannie Mae Small Loan lender, a Freddie Mac Seller/Servicer and the Top Freddie Mac Small Balance Loan Lender, a Fannie Mae and Freddie Mac Seniors Housing Lender, an FHA Multifamily Accelerated Processing (MAP)/LEAN Lender, a HUD-approved LIHTC Lender as well as a CMBS, Bridge, Mezzanine and Preferred Equity lender, consistently building on its reputation for service, quality and flexibility. With a multibillion-dollar servicing portfolio, Arbor is a primary commercial loan servicer and special servicer rated by Standard & Poor’s with an Above Average rating. Arbor is also on the Standard & Poor’s Select Servicer List and is a primary commercial loan servicer and loan level special servicer rated by Fitch Ratings.