From California to Maui, the frequency and scope of wildfire events are rising, causing insurance markets and public agencies to reevaluate property in areas at risk for catastrophic damage. As a result, rental housing providers are seeing greater limitations to coverage, higher premium prices, and, in some cases, a total absence of viable private insurance — a trend detailed in the NMHC 2023 State of Multifamily Risk Survey and Report. This troubling new trend has placed many rental housing operators in a bind where they must simultaneously contend with the declining availability and affordability of insurance options.
Arbor 360º
Success Story: Dedicated Rental Community
A panoramic view of how Arbor grows financial partnerships through successful
product executions that deliver results for our clients
$18.4M Freddie Mac Permanent Loan to Refinance an SFR/BTR Portfolio
54
Units
TN
Knoxville
2022
Year Built
Situation
Haven Realty Capital needed end-to-end financing for a 54-unit single-family rental (SFR) built-to-rent (BTR) community in Knoxville, TN. The property was unique in that its individually parceled homes did not have the types of amenities, such as a pool, gym, or clubhouse, commonly found in multifamily real estate. Haven Realty Capital was looking for an innovative and experienced lending partner who could develop a creative solution to secure permanent funding through a Government Sponsored Agency (GSA).
Arbor Action
On behalf of the borrower, Arbor engaged in extensive conversations with Freddie Mac to develop an out-of-the-box solution to refinance this dedicated rental community with permanent financing. Our team had the pleasure of accompanying several senior representatives of Freddie Mac to Knoxville on a full-day tour of the property. We were delighted to see them determine that this community was a good fit for Freddie Mac multifamily financing because many of its features, including two-car garages, upscale interior design, and premium rental packages, would help attract and retain tenants.
Result
Arbor was uniquely positioned to handle the complexities of this type of SFR/BTR transaction from start to finish. Our team was instrumental in helping Freddie Mac understand that this asset was consistent with traditional multifamily deals because it has the potential to attract quality, long-term tenants with wide-ranging amenities. Arbor created a new financing structure that allowed our borrower to purchase and lease up this community of two-story, four-bedroom, single-family homes, paving the way for many more SFR/BTR deals in the future. Over the years, Arbor has become one of Haven Realty Capital’s lenders of choice.