Analysis

Small Multifamily Investment Snapshot — March 2025

Amid ongoing macroeconomic uncertainty, the small multifamily sector remains favorably positioned for stability as the structural need for affordable housing in the U.S. has supported the strength of the sector’s demand profile.

Articles

Top Markets for Rental Occupancy

Nationally, vacancies have risen, but the performance of rental housing is extremely localized. Out of the 75 largest U.S. metropolitan areas, the occupancy rate for all types of rental properties, including single-family rentals, 2-4 family, multifamily, and mobile homes, increased in 36 markets last year, while exceeding 95% in nearly one-third of all markets, according to an analysis of newly released U.S. Census Bureau data.[1] From Grand Rapids, MI, to Columbia, SC, the top markets for rental occupancy show where conditions are tightest and demand is strongest.

Current Reports

Single-Family Rental Investment Trends Report Q1 2025

Arbor’s Single-Family Rental Investment Trends Report Q1 2025, published in partnership with Chandan Economics, is an up-close look at the single-family rental (SFR) sector as it enters a period of normalcy after explosive pandemic-era growth. SFR maintains its balance with the support of a healthy set of fundamentals while capital markets rebound and rent growth moderates.

Articles

Small Multifamily Price Growth Trends Show Stabilization

Small multifamily price growth trends indicate a stabilization may be ready to take hold. Expanding on the findings of Arbor’s latest Small Multifamily Investment Trends Report, our research teams more closely examined valuations to determine if trends in pricing and other fundamentals are supporting a turnaround.

Articles

SFR Rent Growth: Top Markets and Leading Regions

Elevated mortgage interest rates and high home prices boosted demand for single-family rentals (SFR) last year, supporting the growth of rents in almost all of the 100 largest metropolitan areas. Pricing momentum, which averaged 4.5% nationally, was concentrated in affordable markets in the Northeast and Midwest, an analysis of Zillow’s Observed Rent Index data shows.

Articles

Build-to-Rent’s Robust Activity Settles into Stable Pattern

Increasingly, single-family rental (SFR) operators have been relying on build-to-rent (BTR) development to satisfy their inventory needs. The popularity of BTR communities made economies of scale possible for the SFR sector in the recovery after the 2007 housing crisis and continues to fill a housing need nationwide. Now, newly released U.S. Census Bureau data shows that SFR development activity remained robust even as its momentum slowed, moving the sector into a more stable equilibrium.

Articles

Advancing Sustainability in CRE Finance in a Shifting Landscape

With political headwinds reshaping the corporate responsibility landscape, commercial real estate (CRE) leaders, policymakers, and academics recently gathered in New York City for the NYU Stern Chen Institute for Global Real Estate Finance’s 3rd Annual Symposium on Innovation & Sustainable Real Estate to discuss the future of sustainable real estate finance, investment, operations, and technology. In a series of panel discussions, industry leaders offered their perspectives on how sustainability is evolving in a new political environment and why green policies still make business sense.

Articles

Dr. Sam Chandan Sees an Opportune Moment Emerging for Multifamily Buyers

Rental housing remains uniquely positioned for continued growth in an environment of economic volatility and political uncertainty, Dr. Sam Chandan, founding director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and founder of Chandan Economics, asserts in his video overview of Arbor’s Special Report Spring 2025.

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Arbor 360º

Success Story: Large Multifamily Acquisition

A panoramic view of how Arbor grows financial partnerships through successful

product executions that deliver results for our clients

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$19.3M First-Mortgage Bridge Loan

266

Units

TX

Sherman

'08 & '18

Year Built

Situation

Experienced multifamily owner-operators were seeking financing to acquire and reposition a multifamily community in Sherman, TX. The property was built in two phases, and the borrower was looking to renovate 112 units in the phase 1 portion of the property in order to improve their quality and capture higher rents. The phase 2 units were also achieving below-market rents, and the borrowers’ goal was to raise rents for those units to increase property cash flow. Borrowers also planned to bring in a new, experienced property manager.

Arbor Action

Arbor was tasked with evaluating the borrowers’ business plan to ensure it would adequately increase property value and generate additional cash flow. The clients are repeat Arbor borrowers and large owner-operators who are local to the property, which assured Arbor that the repositioning could be successfully completed on time and on budget, resulting in increased rental income.

Result

Arbor was able to execute a $19.3 million first-mortgage bridge loan to fund the acquisition and renovation of the property. Since the acquisition, the borrowers were able to successfully upgrade interior units, amenities and exteriors, resulting in a 17% increase in gross potential rent and a 98% occupancy rate in just two years. Upon loan maturity, the borrowers were able to refinance to a permanent agency loan. Arbor executed a 12-year, $22.9 million Fannie Mae DUS® Standard Loan, allowing the borrower to retire the existing Arbor bridge loan, fund immediate repairs and other costs, and operate the property for the long term.