While the 2008 financial crisis prompted a cyclical shift in U.S. housing — impacting everything from home prices to who can qualify for a mortgage — an equally impactful demographic change was just taking shape. The unprecedented wave of Baby Boomers that began retiring would disrupt the balance of the housing market.
As secondary and tertiary markets continue to gain parity with larger primary cities around the nation, they offer investors a significant potential for return on investment, even as the U.S. and global economic landscapes face notable headwinds.
The small multifamily sub-sector ended 2022 on a high note with originations falling just behind 2021’s peak. As economic storm clouds continue circling, small multifamily appears fortified from any reverberations that may result.
UNIONDALE, N.Y., March 14, 2023 (GLOBE NEWSWIRE) – Arbor Realty Trust (NYSE: ABR), announced today that the Company is in receipt of the purported “research” report that was published earlier today by Ningi Research, a short seller of Arbor stock. The report lacks merit and contains numerous inaccuracies, misstatements, and otherwise misleading allegations. This false Read the full article…
Arbor Senior Vice President, Special Projects, Governance and Risk, Leah Fisher recently spoke on a thought-provoking panel discussion at InnovateESG 2023, a conference focused on environmental, social, and governance missions, hosted by NYU Stern’s Chen Institute for Global Real Estate Finance.
SFR will maintain exposure to the cyclical disruption brought on by the housing market’s softness and rising interest rates, even though its structural growth outlook remains positive and unchanged.
From Standard DUS® to Small Loans to Structured ARMs, Fannie Mae multifamily loans provide excellent terms and competitive, tiered pricing that enable investors to generate steady and reliable income streams in all economic cycles.
The Mortgage Bankers Association’s CREF23 conference in San Diego in mid-February included comprehensive and insightful panel discussions led by some of the brightest minds in multifamily. During the four-day event, key themes and takeaways emerged that will likely shape the conversation on multifamily financing throughout the year.
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Units
St. Louis
Year Built
Experienced multifamily owners were looking for a refinance on a 314-unit apartment community located in the St. Louis metro area. The sponsors originally built the property in two phases, in 2003 and 2009, as a condo development. However, due to softening in the condo market, a portion of the unsold units were operated as multifamily. The sponsors bought back the sold condo units in 2018 to operate the whole community as multifamily rentals.
Arbor assisted the sponsors with securing a bridge loan in 2019 for the completion of renovations and stabilization of the property, which was only at half occupancy at the time. As of June 2020, the property reached over 90% occupancy and the borrowers were ready to refinance due to the increased value of the asset. The borrowers have a long-term relationship with Arbor and Fannie Mae, so they were comfortable working with Arbor to secure the right financing for their investment needs.
Arbor’s underwriting and originations departments were tasked with demonstrating the sponsors’ continued commitment to the property. Arbor was able to point to the borrowers’ nearly two decades of ownership, local market expertise and investment in improving the asset’s quality and occupancy, which helped support the agency requirement that the borrower possess strong experience and a proven track record.
Arbor executed a 15-year fixed-rate loan under the Fannie Mae DUS® loan program. As a result of the transaction, the borrowers were able to refinance at a low interest rate.