Dealmaker: Arbor Funds $49M in Multifamily Loans

Michael Tucker mtucker@mba.org

November 28, 2018


Arbor Realty Trust, Uniondale, N.Y., recently funded $48.7 million secured by multifamily properties in North Carolina and Utah.

In Charlotte, N.C., 504-unit Pressley South End Apartments received $22 million through Fannie Mae's Delegated Underwriting and Servicing loan program. The loan is fixed for 12 years with an interest-only period.

James Fiesel of Arbor's New York office originated the loan.

In Hendersonville, N.C., Arbor funded a $6.4 million Freddie Mac Small Balance loan. Charleston at the Meadows received the hybrid refinancing. The 20-year loan came with a seven-year fixed period followed by a 13-year floating rate. It has no prepayment premium during the floating period.

Jonathan Chaim of Arbor's New York office originated the loan. "We worked with a local family investment group with generational experience but new to agency loans," he said. "Our borrower liked the nonrecourse component offered by Freddie Mac loans. They also appreciated the rate lock feature that protected them from multiple rate increases during the application process."

In Utah, Arbor Senior Vice President Garth Davis originated two loans totaling $20.3 million. Carrington Place, a 142-unit property in Bountiful, received a 10-year fixed-rate $11.9 million loan through the Fannie Mae Green Financing loan program.

Arbor also wrote an $8.4 million Fannie Mae Delegated Underwriting and Servicing loan in Millcreek. Tapestry Townhomes, which has seven three-story apartment buildings totaling 42 units, received the refinance funding through Fannie Mae's Streamlined Rate Lock product. The Tier II loan was structured with a 12-year fixed rate term and a five-year interest-only period followed by a 30-year amortization schedule.

"By achieving an early three-week rate lock with Fannie Mae's SRL process, we were able to eliminate interest rate risk exposure," Davis said.

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