Press Releases

Arbor’s Servicer Ratings Affirmed and Positive Outlook Rating Assigned by Fitch

Fitch Ratings Recognizes Arbor’s Commitment to Excellence and Innovation Arbor Realty Trust (NYSE:ABR) NEW YORK, NEW YORK – November 29, 2023: Fitch Ratings has reaffirmed Arbor Multifamily Lending, LLC’s (Arbor) commercial primary and special servicer ratings, further solidifying Arbor’s position as a trusted partner in the multifamily lending industry. Concurrently, they have assigned a Positive Outlook to each rating, reflecting an unwavering commitment to excellence and innovation. Commercial primary servicer rating at ‘CPS2’; Outlook Positive; Commercial special servicer rating at ‘CSS3+’; Outlook Positive. “The assignment of the Positive Outlook reflects Fitch’s 12–24 month view on the trajectory of Arbor’s primary servicer rating, noting that as the new borrower website is fully realized and deployed and turnover within the primary servicing function continues to stabilize, positive rating movement is possible.” – Fitch Ratings Read more from Fitch about the key rating drivers behind this announcement. Direct inquiries to [email protected]. About Arbor Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial Read the full article…

Articles

Video: Special Report Fall 2023 Key Takeaways

In this video, Dr. Sam Chandan, Founding Director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and non-executive chairman of Chandan Economics, details the key takeaways of Arbor’s Special Report Fall 2023, which he co-authored with Ivan Kaufman, Chairman and CEO of Arbor Realty Trust.

Articles

FHFA Loan Caps for 2024: What Multifamily Borrowers Need to Know

The Federal Housing Finance Agency (FHFA) announced a $10 billion rollback of Fannie Mae and Freddie Mac’s volume cap for loan purchases for 2023 to $140 billion ($70 billion for each agency). This move aligns with industry expectations, given the anticipation of continued headwinds for the multifamily in 2024. Next year’s cap for the Government-Sponsored Entities (GSEs) is a reduction of approximately 7% from the $150 billion limit set for 2023 and a return to the level it was in 2021.

Current Reports

Affordable Housing Trends Report Fall 2023

With the cost of living climbing, the need for affordable housing has become more urgent. Although demand continues to outpace available supply, multifamily investment in affordable housing is fortified by Low-Income Housing Tax Credits (LIHTC), Project-Based Section 8, and the Housing Choice Voucher (HCV) programs. Arbor’s Affordable Housing Trends Report Fall 2023, developed in partnership with Chandan Economics, examines the supply-driven programs and policies designed to improve supply at a point in time when federal gridlock has stalled many funding increases.

Current Reports

Small Multifamily Investment Trends Report Q4 2023

Arbor’s Small Multifamily Investment Trends Report Q4 2023, developed in partnership with Chandan Economics, is a snapshot of a strong and resilient subsector continuing to navigate ongoing market dislocation. The report shows that distress has remained limited, even with valuations and measures of risk pricing in flux. As conditions start to stabilize, there are signs that deal activity is picking up.

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Home | Success Stories | Townhome-Style Apartment Community: $16.5M Fannie Mae DUS® Standard Loan with Green Financing

Arbor 360º

Success Story: Townhome-Style
Apartment Community

A panoramic view of how Arbor grows financial partnerships through successful

product executions that deliver results for our clients

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$16.5M Fannie Mae DUS® Standard Loan with Green Financing®

153

Units

CA

Santa Barbara County

1960

Year Built

Situation

The borrower was interested in refinancing a vintage townhome-style apartment community in Santa Barbara County, California, to improve cash flow for their growing portfolio. With interest rates rising, the borrower was in search of cost savings during the refinancing of a loan. The environmentally conscious borrower, who already intended to make improvements to their properties, was interested in exploring how going green could result in short- and long-term savings.

Arbor Action

Through a focus on developing client relationships, Arbor keenly understood the borrower’s objectives to cut down costs and protect the environment. Arbor was able to fulfill both goals in one transaction. First, Arbor utilized the Fannie Mae Green Financing® program to lower the borrower’s interest rate and increase net operating income. Then, Arbor closely monitored trends in U.S. Treasurys and moved quickly to lock in the best possible rate at the time.

Result

Fannie Mae’s Green Financing program enabled the borrower to save money on interest by committing to make enhancements to the property that improve energy efficiency by 30% within 12 months of closing. By enrolling in this program, they will save a significant amount of money due to locking in at a lower interest rate and the longer interest-only period of the loan. Ultimately, Arbor’s borrower received a better rate at a higher loan amount and will likely achieve a high net operating income over the life of the loan.

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