Investor Purchases, New Starts, and Tenant Performance Show Strength as Cap Rates Rise Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds. Last year, investors purchased more single-family rental (SFR) units than in 2021 as uncertainty Read the full article…
Success Story: Modern Apartment
Community Rich in Amenities
A panoramic view of how Arbor grows financial partnerships through successful
product executions that deliver results for our clients
$34M FHA 223(f) Loan Refinancing with
A real estate investment firm was exploring a full acquisition of a newly constructed apartment community in Houston, TX. Without an existing asset and with limited operating history in this region, the borrower sought expert guidance to develop a strategy to acquire the property. With interest rates rising, the borrower wanted to lock in a highly competitive rate to refinance a rental community that had swelled to over 90% capacity.
Arbor worked with the U.S. Department of Housing and Urban Development (HUD) to secure an FHA 223(f) loan refinance with green savings, which provides long-term, fixed-rate financing for refinancings, acquisitions, or moderate renovations. Arbor negotiated an underwriting change while interest rates were increasing, allowing the borrower to secure a Bridge to HUD loan to help improve net operating income and increase loan proceeds. In addition, Arbor connected the borrower with HUD’s green program, which reduces existing loan interest rates.
The borrower secured a Bridge to HUD loan that funded the acquisition of a beautiful and sprawling Houston apartment community with wide-ranging amenities. They achieved a better-than-anticipated rate for their HUD execution. The apartment community, constructed to meet high energy efficiency and sustainability standards, was then entered into HUD’s green program, reducing mortgage insurance premiums enabling the borrower to achieve optimal savings.