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Research

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.

Around the Web

Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…

GENERAL: 800.ARBOR.10

Arbor 360º

Success Story: Large Multifamily
New Construction

A panoramic view of how Arbor grows financial partnerships through successful

product executions that deliver results for our clients

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$23.4M FHA 221(d)(4) Loan

192

Units

GA

Kingsland

2021

Year Built

Situation

Multifamily owner-operators with decades of experience in construction, acquisition and management were looking to develop a 192-unit, Class A apartment community in Kingsland, GA. Low vacancy rates and limited new supply in the market made it an opportune time to develop new market-rate housing in the market. The borrowers were looking for FHA financing to construct the property and transition to long-term permanent financing upon completion and stabilization.

Arbor Action

Arbor began the underwriting and loan application process in late 2019, with the expectation that the borrowers’ strong development experience and HUD knowledge would make them a good candidate for FHA financing with a 16-month construction timeline. The unexpected impacts of the pandemic posed challenges and disruption in the market, but the Arbor team worked diligently to ensure the borrowers would receive financing in a timely manner and stay on schedule.

Result

Due to Arbor’s experienced FHA team and the borrowers’ strong application, Arbor successfully secured a $23.4 million FHA 221(d)(4) loan to fund the construction of the property and transition to a 40-year term loan. The loan allowed the borrower to cover development costs and operate the property for stable rental income.