Blog

Ivan Kaufman, ceo of ALEX

U.S. Multifamily Remains Very Attractive to Foreign Investors

A new research blog post on ALEX Chatter examines the continued flood of foreign investment into U.S. multifamily. In fact, as Real Capital Analytics data points out, 2015 represented a new high for foreign investment in American apartments. Even more impressive was that the 2015 investment figure of $16.3 billion was nearly triple the $5.7 billion achieved in 2014. Recent revisions to FIRPTA legislation could lead to another banner year in 2016:

“Foreign investment in the U.S. is expected to increase even further during 2016, in part driven by changes to the Foreign Investment in Real Property Tax Act (FIRPTA) enacted in December. The changes reduce tax obligations for non-U.S. investors investing in U.S. real estate.

Most notably, the maximum share a non-U.S. investor can now hold in a U.S. real estate investment trust (REIT) without being subject to federal obligations through FIRPTA increases from 5% to 10%. Additionally, real property interests held by qualified foreign pension funds are exempt. According to the Obama Administration, the changes are expected to not only spur investment in commercial real estate, but also the country’s aging infrastructure.”

For more insight into the growing foreign interest in American real estate, read the full story on ALEX Chatter.

Most U.S. Renters Live in Small Apartment Properties

Ivan Kaufman, NYC

Go ahead and picture an apartment building. If you are like most people, then you are likely envisioning something large, tall and in a city. Well — as recent Chandan Economics research published on ALEX Chatter shows — most multifamily renters (57%) actually live in buildings with between 5 and 19 units. The research also examines the growth in renter cohorts by asset size:

“More telling than the current large and small property shares of the market, the rate of growth in the small property population has increased, from an annualized 1.6 percent between 2006 and 2010, to 2.0 percent between 2010 and 2014. As shown below, the growth rate of residents in large properties has actually slowed.”

Small buildings are often overlooked when thinking about apartments because Millennials — the largest cohort of renters — typically favor large, amenity-rich urban properties. For the rest of American renters (including families looking for units with larger bedroom counts) smaller apartment properties present a better, and oftentimes more affordable, opportunity. Be sure to check out the full ALEX Chatter blog post for charts.  

Arbor’s Ties To Iconic NYC Landmarks

Arbor has originated billions of dollars in commercial real estate financing for more than two decades. Because of its long track record of work, Arbor’s commercial real estate financing business has quite naturally been steeped in history through the funding of several iconic New York buildings. Let me take you on a tour of three great landmarks where Arbor has been fortunate to have played a key financial role.

5 Madison Ave. (Metlife Clock Tower)

Located at the southeast corner of Madison Square Park, the landmarked Metlife Clock Tower has served as jewel of the Manhattan skyline for over a century. Constructed in the early 1900s, the building housed the global headquarters for Metlife until the 2000s. Upon erection, the 41-story clock tower stood as the tallest building for three years until the Woolworth Building took the title.

The gilded cupola at the uppermost top of the building serves as an “eternal light,” which is perpetually illuminated even after the rest of the lighting system has been turned off. The building has been a fixture in Metropolitan Life Insurance Company’s advertising over the years. Print ads featured an illustration of the early skyscraper with an illuminated spire and the slogan “The Light That Never Fails.”

The clock tower has been registered as a national landmark since 1972 and has gone through many iterations since its development. Most recently, the Marriott has announced plans to convert the building into a high-end New York Edition Hotel offering spacious event space, a fitness center and opulent hotel rooms.

23 Wall St. (The Corner)

Often referred to as “The Corner,” 23 Wall St. is located on the southeast corner of Wall and Broad streets, deep in the trenches of the Financial District of New York. A registered landmark, the building was a known headquarters of the “House of Morgan” (J.P. Morgan & Co.). The building’s classic interior architecture of deep woods and impressive chandeliers is demonstrative of the financial district’s monumental tie to New York’s history. While the four-story property is often dwarfed by nearby skyscrapers, its fabrication of limestone and limited windows make it a stand-out for lovers of classical architecture.

63 W. 38th St. (The Refinery Hotel)

Located at 63 W. 38th St., the 1912-built neo-Gothic tower offers a true New York experience. Home of The Refinery, a boutique hotel, the tower allows patrons to dip into the past with all the amenities of the modern. Located in the Fashion District, the 12-story Refinery offers travelers 197 guest rooms immersed in modernity, with a glimpse into the industrial past of the property. The hotel’s rooftop has been extolled for its gastropub food and spirits. Not surprisingly, the hotel has been nominated for the Conde Nast Readers’ Choice Awards. It continues to be a popular choice for accommodations in city.

5 Times Square (Ernst & Young Tower)

Ernst & Young Tower — photo by Zimbio

Also called the Ernst & Young Tower, this New York skyscraper sits at the heart of Midtown. The building is currently used as commercial and retail space. Made of steel and exhibiting the true modernism of its time, the tower is full of sharp angles, diagonals and a sloping roof, which gives the viewer an illusion that it is made up of multiple structures. High investor demand has been exhibited in the Midtown Manhattan area, as office values were up 14% from 2013 to 2014, based on figures from Green Street Advisors Inc.

The tower boasts 1.1 million square feet of office space and sold for $1.5 billion last June — the biggest transaction since 2010. The building has been a designated New York City landmark since 1987.

230 Park Ave. (The Helmsley Building)

The Helmsley Building (re-named after Leona Helmsley) stands at 230 Park Avenue in Midtown New York. The 35-story edifice, built in 1929, was designed by the same architects of New York’s Grand Central Station. The building itself is actually located by Grand Central Terminal between East 45th and East 46th Streets. Fabricated in the neoclassical style called Beaux-Art, the beautiful opulent color of the tower’s cupola cuts a striking green color across the New York skyline. The building contains 2,300,000 square feet of staggering space and sold earlier this year for $1.2 billion.

20 Pine (The Collection)

Once used as the headquarters for Morgan Guaranty Trust Company, the 35-story building, erected in 1928, was designed by Chicago architecture firm Graham, Anderson, Probst & White, who also designed the Wrigley Building and Union Station in Chicago.

In 2007 there was a redesign of the structure from finance space to high-class condo space by designers Armani/Casa. Starting in the $1.2-million range, 20 Pine now functions as a condo under the moniker the Collection. The building offers high-class amenities to its clients, including views of the city.

About Arbor

Founded by Chairman and CEO Ivan Kaufman, Arbor Commercial Mortgage, LLC and Arbor Commercial Funding, LLC are national direct lenders specializing in loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. Arbor is a Top 10 Fannie Mae DUS® Multifamily Lender by volume and the Top Fannie Mae Small Loan lender, a Freddie Mac Program Plus® Seller/Servicer and Small Balance Loan Lender, a Fannie Mae and Freddie Mac Seniors Housing Lender, an FHA Multifamily Accelerated Processing (MAP)/LEAN Lender, a HUD-approved LIHTC Lender as well as a CMBS, Bridge,Mezzanine and Preferred Equity lender, consistently building on its reputation for service, quality and flexibility. With a current servicing portfolio of more than $12 billion, Arbor is a primary commercial loan servicer and special servicer rated by Standard & Poor’s with an Above Average rating. Arbor is also on the Standard & Poor’s Select Servicer List and is a primary commercial loan servicer and loan level special servicer rated by Fitch Ratings.

For more information about Arbor, visit www.arbor.com.

Arbor Funds Over $100 million in Multifamily Transactions

 

Florida - Skyline

Florida – Skyline

On the heels of funding $200 million in multifamily loans across five states, Arbor Commercial Mortgage, LLC just announced the funding of over $100 million for 21 loans across Alabama, Texas, The Carolinas, Florida, Georgia, Michigan and New York. The most recent production of loans was funded through the following programs:  Fannie Mae Delegated Underwriting & Servicing (DUS®) Loan, Fannie Mae DUS Multifamily Affordable Housing, Fannie Mae DUS Small Loan, Fannie Mae DUS ARM, Fannie Mae DUS Student Housing Loan, Freddie Mac Loan, Freddie Mac Small Balance Loan and Arbor Realty Trust’s Bridge Loan. Alex Kaushansky, Vice President in Arbor’s New York City office, originated the loans.

Arbor’s high level of proficiency in meeting multifamily demands across the United States, the South and other regions involved in this transaction demonstrates the excellence in customizable loan products and personalized customer service Arbor offers its borrowers. Arbor’s success in multi-million dollar funding is in large part a product of the fundamentally strong multifamily market.

Some of the properties that made up this most recent group of Arbor funding transactions include:

  •         Sutton Place Apartments, Corpus Christi, TX – This 201-unit multifamily property received $10,750,000 funded under the Fannie Mae DUS Loan product line. The 12-year refinance loan amortizes on a 30-year schedule.
  •         Prairie Estates Townhomes, Grand Prairie, TX – This 160-unit multifamily property received $8,400,000 funded under the Fannie Mae DUS Affordable Housing product line. The 10-year refinance loan amortizes on a 30-year schedule.
  •         Fox Creek Apartments, Carrollton TX – This 172-unit multifamily property received $7,090,000 funded under the Fannie Mae DUS Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  •         La Ventana Apartments, Dallas, TX – This 87-unit multifamily property received $2,500,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year refinance loan amortizes on a 10-year schedule.
  •         Broadway Square Apartments, Houston, TX – This 2,470-unit multifamily property received $1,500,000 funded under the Fannie Mae Small Loan product line. The seven-year acquisition loan amortizes on a 25-year schedule.
  •         Sunriser Apartments, Sunrise, FL – This 77-unit multifamily property received $3,850,000 funded under the Fannie Mae DUS Loan product line. The 10-year loan amortizes on a 30-year schedule.
  •         Casa Del Toro, Tampa, FL – This multifamily property received $3,481,400 funded under the Fannie Mae DUS Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  •         Riverside Apartments, Fort Lauderdale, FL – This 32-unit multifamily property received $2,325,000 funded under the Freddie Mac Small Loan product line. The 10-year acquisition loan amortizes on a 10-year schedule.
  •         Boca Raton Apartments, Boca Raton, FL – This multifamily property received $1,167,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  •         Reserve at Cavalier, Greenville, SC – This 152-unit multifamily property received $5,685,600 funded under the Fannie Mae DUS Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  •         Hampton Forest Apartments, Greenville, SC – This 152-unit multifamily property received $4,420,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  •         University Commons, Greenwood, SC – This 106-unit multifamily property received $3,148,000 funded under the Fannie Mae DUS Student Housing Loan product line. The seven-year acquisition loan amortizes on a 30-year schedule. The property serves Lander University students.
  •         Timberchase Apartments, Birmingham, AL – This 94-unit multifamily property received $3,975,800 funded under the Fannie Mae DUS Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  •         Eagle Point Apartments, Hueytown, AL – This 68-unit multifamily property received $1,894,000 funded under the Freddie Mac Small Loan product line. The 10-year refinance loan amortizes on a 10-year schedule.
  •         Alexander Court Apartments, Dothan, AL – This multifamily property received $1,600,000 funded under the Fannie Mae Affordable Housing product line. The seven-year refinance loan amortizes on a 30-year schedule.
  •         Timberland Apartments, Savannah, GA – This 176-unit multifamily property received $8,920,000 funded under the Fannie Mae DUS Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  •         Edgewater Trace Apartments, Savannah, GA– This 159-unit multifamily property received $8,240,000 funded under the Fannie Mae DUS Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  •         Multifamily Property, Binghamton, NY – This 716-unit multifamily property received $12,200,000 funded under Arbor Realty Trust’s Bridge Loan product line.
  •         Somerset Apartments, Charlotte, NC – This 240-unit multifamily property received $5,785,000 funded under the Fannie Mae DUS ARM Loan product line. The seven-year refinance loan amortizes on a 30-year schedule.
  •         Campus Apartments, Columbus, OH – This 54-unit multifamily property received $2,835,000 funded under the Fannie Mae DUS Student Housing Loan product line. The 10-year refinance loan amortizes on a 30-year schedule. The property serves Ohio State University students.
  •         Woodland Square Apartments, Pontiac, MI – This multifamily property received $1,000,000 funded under the Freddie Mac Small Loan product line. The 10-year refinance loan includes full-term interest only.

About Us

Arbor Commercial Mortgage, LLC also manages Arbor Realty Trust, Inc., a real estate investment trust, (REIT), formed to invest in mortgage-related securities, real estate-related bridge, junior participating interests in first mortgages, mezzanine loans, preferred and direct equity investments and in limited cases, discounted mortgage notes and other real estate related assets. Arbor is headquartered in Uniondale, NY, with full-service lending offices throughout the United States.  For more information about Arbor, visit www.arbor.com.

 

Arbor Completes $200 Million Multifamily Loans That Span 5 States

 

 

Houston, Texas

Renowned direct lender Arbor Commercial Mortgage, LLC [“Arbor”] recently announced the closing of $200,315,900 in loans for properties across five Southern and Midwestern states, including Texas, Arkansas, Tennessee, Alabama and Ohio.

The loans were procured through Fannie Mae Delegated Underwriting & Servicing (DUS®) Loan, Fannie Mae DUS® Multifamily Affordable Housing, Fannie Mae DUS® Small Loan, CMBS and Arbor Realty Trust’s Bridge and Mezzanine programs.

2015 has already been a significant year for Arbor, as it was just recently named one of Freddie Mac’s Senior Housing Lenders and acquired its Fannie Mae Seniors Housing DUS® license to accompany its established FHA and bridge seniors housing and healthcare offerings.

The impressive list of loans Arbor funded in each state with the descriptions and breakdowns of each one is as follows:

Alabama Properties

  • Lake Forest Apartments, Daphne, AL – 128-unit multifamily property received $4,762,500 funded under the Fannie Mae DUS Loan product line. The seven-year refinance loan amortizes on a 36-year schedule.

Arkansas Properties

  • Springdale Apartments, Springdale, AR – 102-unit multifamily property received $2,300,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  • Crutcher Apartments, Springdale, AR– 97-unit multifamily property received $2,156,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  • Powell Apartments, Springdale, AR – 52-unit multifamily property received $900,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.

Ohio Properties

  • Multifamily Property, Canton, OHMultifamily property received $3,955,500 funded under the Fannie Mae Affordable Housing product line. The seven-year refinance loan amortizes on a 30-year schedule.

Tennessee Properties

  • Avery Park Apartments, Memphis, TN This 231-unit multifamily property received $4,870,900 funded under the Fannie Mae DUS Loan product line. The 10-year refinance loan amortizes on a 30-year schedule, and was used to retire an Arbor Bridge loan.

Texas Properties

  • Stafford Oaks Apartments, Stafford, TX – 175-until multifamily property received $11,000,000 funded under the Fannie Mae DUS product line. The 10-year refinance loan amortizes over a 30-year schedule.
  • Clear Lake Falls, Webster, TX – 90-unit multifamily property received $4,836,000 funded under the Freddie Mac Small Balance Loan product line. The seven-year refinance loan amortizes on a 30-year schedule.
  • Fox Bend Apartments, Garland, TX – 100-unit multifamily property received $4,000,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year refinance loan amortizes on a 30-year schedule.
  • Pioneer House and Executive Apartments, Irving, TX – 146-unit multifamily property received $3,830,000 funded under the Fannie Mae DUS Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  • Multifamily Property, Houston, TX – Multifamily property received $47,000,000 funded under the CMBS Loan product line, as well as $3,000,000 funded under the Arbor Realty Trust Mezzanine Loan product line for refinance. Both are co-term, 10-year loans.
  • Santa Barbara Apartments, Houston, TX – 176-unit multifamily property received $2,580,000 funded under the Fannie Mae Affordable Housing product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  • Southside Village Apartments, Brownwood, TX – 104-unit multifamily property received $1,850,000 funded under the Fannie Mae DUS Small Loan product line. The seven-year acquisition loan amortizes on a 30-year schedule.
  • Ashford Pointe, Houston, TX – 224-unit multifamily property received $1,800,000 funded under the Fannie Mae DUS Supplemental Loan product line. The seven-year loan amortizes on a 30-year schedule.
  • Alexander Lane Apartments, Euless, TX – 39-unit multifamily property received $1,525,000 funded under the Fannie Mae DUS Small Loan product line. The 12-year refinance loan amortizes on a 30-year schedule.
  •  Bayou Villa Apartments, La Porte, TX – 56-unit multifamily property received $1,475,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  • Multifamily Property, Irving, TX – 450-plus-unit multifamily property received $23,380,000 for acquisition rehab funded under the Arbor Realty Trust Bridge Loan product line.
  • Multifamily Property, Houston, TX – Multifamily property received $22,995,000 funded under the Fannie Mae DUS Loan product line. The seven-year refinance loan amortizes on a 30-year schedule, and was used to retire a $16,500,000 Arbor Realty Trust Bridge Loan.
  • Multifamily Property, Houston, TX – Multifamily property received $29,700,000 for acquisition rehab funded under the Arbor Realty Trust Bridge Loan product line.
  • Multifamily Property, Galveston, TX – Multifamily property received $15,900,000 for acquisition rehab funded under the Arbor Realty Trust Bridge Loan product line.
  • Multifamily Property, Bryan, TX – 248-unit multifamily property received $6,500,000 for acquisition rehab funded under the Arbor Realty Trust Bridge Loan product line.

Arbor Commercial Mortgage, LLC also manages Arbor Realty Trust, Inc., a real estate investment trust, (REIT), formed to invest in mortgage-related securities, real estate-related bridge, junior participating interests in first mortgages, mezzanine loans, preferred and direct equity investments and in limited cases, discounted mortgage notes and other real estate related assets.

For more information about Arbor, visit www.arbor.com.

Rooted in Relationships: The Evolution of Arbor

 

Arbor's Enduring History

Arbor’s Enduring History

Truly understanding a client’s needs and partnering with them through the financing process has helped differentiate the Arbor family of companies from its peers for more than two decades. From its beginning in 1983 as Arbor National Mortgage as a leading single-family residential lender, to its present-day status as a leading, nationwide multifamily lender, truly personalized relationship building has always been a part of Arbor’s roots.

Arbor National Mortgage, as the firm was originally known, was a household name in the New York Metropolitan area in late 1980s and early nineties and at one time employed 1,200 employees across eight states and closed every one in eight home loans. Working hard to brand its strong community ties, Arbor provide every one of its new homeowners with a tree for their yards, where so many remain today.

The brand strengthened and grew, and so did the platform. In the early nineties, a new subsidiary called Arbor National Commercial Mortgage was formed, planting the seed for the future commercial side of the business. Eventually, the residential side was sold for a nearly 100% investor return, but the commercial side of the business remained with Arbor and, in 1995, Arbor Commercial Mortgage was born.

Since that time Arbor has achieved many milestones, including becoming a Top 10 Fannie Mae DUS® Multifamily Lender eight years and counting, starting in 2007, and the Top Fannie Mae Small Loan Lender in 2014.

Small $1-million to $5-million loans have long been a part of Arbor’s business foundation, as the company was the first to beta test Fannie Mae’s small loan program in the mid-1990s and, in 2015, assisted in championing Freddie Mac’s own small balance loan product.

With a current servicing portfolio of more than $11 billion, Arbor holds an Above Average rating from Standard & Poor’s. Arbor is also on the Standard & Poor’s Select Servicer List and is a primary commercial loan servicer and loan level special servicer rated by Fitch Ratings. Arbor has also expanded to become one of the most diverse and flexible multifamily lenders in the market with a list of loan products uniquely comprehensive and customizable for borrowers’ individual needs. These include:

Fannie Mae

Freddie Mac

FHA

Bridge

CMBS

Mezzanine

Preferred Equity

Small Loans

Despite its continually growing loan product lineup, to Arbor, the client and the relationship remain the key to its success. So even today, Arbor is still committed to the same great customer service it started with in 1983, but with even deeper, longer-term relationships. Through more than three combined decades of business, Arbor’s clients know they have more than a lender, they have a partner.

Freddie Mac Names Arbor As Seniors Housing Lender

 

Freddie Mac

Freddie Mac

Freddie Mac has named their newest Seniors Housing Lender as Arbor Commercial Mortgage, LLC — a national, direct commercial real estate lender.

One of only 15 Freddie Mac Senior Housing Lenders in the U.S., Arbor has obtained a coveted loan product that will increase a comprehensive financing platform. Arbor will now be able to provide one of the most flexible and competitive financing available for independent and assisted living properties as well as seniors properties with skilled nursing or memory care components.

Just two weeks prior to this Freddie Mac appointment, Arbor acquired its Fannie Mae Seniors Housing DUS® license to accompany its already established FHA and bridge seniors housing and healthcare offerings. With the combination of short-term bridge financing, with permanent financing through Fannie Mae, FHA, and Freddie Mac, Arbor stands uniquely diversified — as a one-stop option for all seniors housing and healthcare financial needs.

According to Freddie Mac’s Seniors Housing Director Steven Schmidt, this latest announcement indicates the rapid growth and strengthening of the relationship between Freddie Mac and Arbor.

“We have enjoyed a strong and quickly growing partnership with Arbor in the short 15 months we have been working with the company. Based upon the speed and success in which this partnership has been developing, we look forward to an even more successful future together, providing market-leading loan products within the seniors housing and multifamily sectors.”

Arbor is excited to partner again with Freddie Mac, this time as its latest seniors housing lender. With this loan product, the already existing Seniors Housing and Healthcare Financing group will even more significant growth and establish a leading source for financing in the industry.

Arbor has already closed its first loan under its Freddie Mac Seniors Housing approval in Mesquite, TX, where it provided $12.1 million for the refinancing of Cambridge Court Assisted Living, a 16-year-old, 98-unit property that averages 96.5% occupancy and was renovated in 2013. The 10-year loan includes 30 years of amortization.

Photo credit: Libertyblog

Fannie Mae Approves Arbor As Senior Housing DUS Lender

 

Arbor Approved Senior Housing DUS Lender By Fannie Mae

Arbor Approved Senior Housing DUS Lender By Fannie Mae

Last month, Fannie Mae officially named Arbor Commercial Funding, LLC, a wholly owned subsidiary of Arbor Commercial Mortgage, a Fannie Mae Seniors Housing Delegated Underwriting and Servicing (DUS®) lender. Arbor was already an existing lender in Fannie Mae’s conventional multifamily housing program.

Arbor’s consistent record as one of the highest producers of Multifamily Affordable Housing and Senior Housing, has also seen Fannie Mae name the lender as one of the Top 10 DUS Producers in 2014, a Top 10 Producer for Multifamily Affordable Housing and a Top 10 Producer for Senior Housing.

The disclosure will make Arbor one of an elite group of 17 Fannie Mae Seniors Housing lenders in the market that can offer its clients best fixed and variable loan products available in the healthcare market. The platform has also been set to include financial assistance for independent and assisted living, and Alzheimer’s and Dementia Care facilities.

The partnership between Arbor and Fannie Mae has spanned two decades so the announcement comes as no surprise. Fannie Mae’s Vice President of Borrower Relationships, Structured Transactions and Seniors Housing, Phyllis Klein, subsequently said in a statement, “We look forward to seeing Arbor bring our customized and flexible financing solutions to its seniors housing clients.”

Arbor’s new Fannie Mae Seniors Housing platform will greatly strengthen the capabilities of the company’s dedicated Seniors Housing & Healthcare Finance group, which has been uniquely positioned to offer investors an easy and complete financing experience with bridge and FHA seniors housing loans as well.

With the recent news of multifamily and assisted living evictions of seniors, Arbor’s new designation may become a welcome relief to the growing number of seniors in need of an advocacy in the multifamily and senior housing.

Arbor Commercial Mortgage, LLC also manages Arbor Realty Trust, Inc., a real estate investment trust, (REIT), formed to invest in mortgage-related securities, real estate-related bridge, junior participating interests in first mortgages, mezzanine loans, preferred and direct equity investments and in limited cases, discounted mortgage notes and other real estate related assets.

Obtaining Fannie Mae Seniors Housing approval acknowledges Arbor’s longstanding relationship with Fannie Mae, and its commitment to strengthening the Senior Housing & Healthcare platform to provide unique loan and financing options to seniors.

 

Loan Processing Automation Evolves – Arbor LoanExpress Streamlines Online Multifamily Lending Space

 

Ivan Kaufman LoanExpress Logo

In the information age, convenient does not always mean better. The quest to build faster, advanced platforms sometimes results in overwrought machines that value flash over function. Unfortunately, in many instances, customer service often disappears along the way. Despite this, innovation and personalized care need not work at cross-purposes. Indeed, the two have driven Arbor’s recently launched automated loan origination platform since day one.

Following extensive research, time and development, Arbor’s LoanExpress was launched in January 2015 for the multifamily investor. Its unique approach to handling the substantial documentation requirements innate within commercial lending is an extension of the residential lending industry’s immensely successful deployment of automated loan processing technology that began more than a decade ago.

 

Remembering the 90s
When we look at the evolution of loan processing automation, it’s impossible to ignore the correlation between this technology and the residential marketplace. Indeed, residential mortgage lending and automated loan processing grew up together in recent years and now it’s hard to imagine one without the other.

This marriage of technology and residential lending began when financial software giant Intuit acquired Rock Financial Mortgage in the late 1990s. From this union arose Quicken Loans, now one of the largest retail mortgage lenders in the country.

Arbor, too, has deep roots in residential lending. The company began operations in 1983 as Arbor National Holdings, a residential lending firm that eventually grew to more than 1,200 employees while providing single-family loans to one in every three homes it the New York tri-state area. In 1995, Bank of America purchased Arbor National Holdings, but we retained our interests in commercial real estate lending, building the platform to for our designation as a Fannie Mae DUS® Multifamily lender, FHA MAP lender, Ginnie Mae Issuer and, most recently, a designated Freddie Mac Multifamily Program Plus® Seller / Servicer and national small balance loan lender.

 

Growing Up (and Out)
Arbor has used various limited forms of automation for the past 20 years. However, as clients have begun to express an interest in and acumen for more Internet-based systems, Arbor understood that it had to evolve in order to deliver even better customer service to borrowers. Arbor needed to look for ways to make the document collection process easier without losing the one-on-one dialogue central to its brand and business philosophy. A better solution would boast the same excellent standard of personalized customer service as well as technological convenience and efficiency. This solution would become what is known today as Arbor LoanExpress, a proprietary, sophisticated, user-friendly online hub where clients can submit and review loan documents quickly and securely. Clients can access the portal from anywhere and enjoy an interactive process with dedicated Arbor deal team members personally handling their loans.

 

Moving Forward
In 2014, Arbor worked with Freddie Mac to develop and eventually become a leader in another product line within the multifamily arena for loans in the $1 to $5 million volume range. Freddie Mac unveiled this national Small Balance Loan product in October 2014 to provide acquisition and refinance loans for the multifamily affordable housing marketplace.

Through Arbor LoanExpress, Arbor now has an unprecedented ability to offer its clients a uniquely streamlined approach for obtaining small balance loans under both the Fannie Mae and Freddie Mac small loan programs. By creating a financing environment with tremendous loan processing efficiencies, interactive communication and, ultimately, speed-to-close, Arbor has built a new lending paradigm for multifamily borrowers. And now we look forward to introducing phase two of Arbor LoanExpress in the next few months. This new expanded platform will be positioned to further revolutionize the industry. For more information, please go to www.arborloanexpress.com.

 

Ivan Kaufman is chairman and CEO of Arbor Commercial Mortgage.