In many urban areas, densely concentrated housing, strong transit networks, and walkable neighborhoods offer residents viable environmentally friendly commuting alternatives. Using data from the U.S. Census Bureau’s American Community Survey, Arbor Realty Trust and Chandan Economics examined commuting patterns of workers living in multifamily rental housing in the nation’s largest metropolitan areas to identify where renters rely least on private cars to travel to the office.
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Success Story: Large Multifamily Acquisition
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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.