Arbor Launches Preferred Equity Product Behind Freddie Mac Loans

Arbor is pleased to announce the launch of a new Preferred Equity Product that will be available behind Freddie Mac loans. We now offer our borrowers access to Proprietary Preferred Equity behind the Freddie Mac Conventional loans we originate. With Arbor, you can now simultaneously secure a senior loan and preferred equity under one roof, streamlining your experience throughout the lifecycle of your loan. In one coterminous transaction, Arbor borrowers can enjoy the ease of best-in-class execution from one of the longest-tenured Freddie Mac Optigo® Seller/Servicers without headaches or delays.

The Best of Freddie Mac Powered by the Arbor Advantage

Freddie Mac’s forward-thinking approach permits Arbor to make equity investments to meet expanding multifamily capital needs. It is a valuable alternative funding source for borrowers seeking to enhance the capital stack for a project.

“Arbor’s decades-long relationship with Freddie Mac has consistently helped us connect borrowers with customized and flexible financing options that fit their needs,” said Arbor’s John Caulfield, EVP, Chief Operating Officer, Agency Lending. “Our newest program demonstrates the depth of our partnership and the value it provides.”

Meeting Multifamily Borrowers’ Capital Needs

Freddie Mac updated their policies on Preferred Equity to empower borrowers with an additional, more streamlined type of financing to achieve higher leverage.

Under this new program, preferred equity borrowers gain the opportunity to work with Arbor’s experienced team all the way through servicing without interruption.

Arbor’s Proprietary Preferred Equity Terms

Arbor Proprietary Preferred Equity behind Freddie Mac Conventional loans is available immediately and to all borrowers.

• Preferred equity amounts generally range from $3 million to $25 million with a fixed-rate structure.
• Proceeds may be used for acquisition or refinance.
• Eligible properties include standard multifamily housing, student housing, manufactured housing communities, cooperative housing, and build-to-rent (BTR) properties.
• Borrowers must first qualify for a Freddie Mac Conventional senior loan.
• Early rate lock and index lock options may be available subject to Freddie Mac approval.
• Phased contributions of preferred equity during the course of the senior loan up to the maximum allowed by Freddie Mac at origination will be considered.   

“Arbor’s long history with Freddie Mac has allowed us to launch an innovative and streamlined private equity offering that we can custom-tailor to the needs of our borrowers,” said Arbor’s Jean-Laurent Pouliot, Managing Director, Senior Production Officer. “This new product has many unique and flexible features designed to fit a wide range of scenarios. Backed by our best-in-class servicing, Arbor Proprietary Preferred Equity is a program like no other on the market.”

Growing Financial Relationships with Freddie Mac

Arbor’s long-standing Freddie Mac relationship underscores our commitment to excellence. Last year, Arbor led all other lenders in Freddie Mac Workforce Housing Rent Preservation lending. We’ve also been consistently named a top Small Balance Loan lender.

For more than 30 years, Arbor has been a trusted financing source for multifamily borrowers nationwide. Our Freddie Mac Multifamily platform provides access to innovative multifamily financing products, including Workforce Housing Preservation. From small loans to large loans, Arbor partners with experienced sponsors in strong markets across the country to improve the rental housing supply.

Partner with Arbor Today

Interested in customized multifamily solutions? Contact us to learn more about Arbor’s Proprietary Preferred Equity behind Freddie Mac Conventional loans.

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