Dealmaker: Arbor Commercial Closes Four Deals for $20M
Arbor Commercial Mortgage, Uniondale, N.Y., announced funding of four loans totaling $20.2 million in North Carolina, New York, Florida and Texas.
Alex Kaushansky, vice president in Arbor’s New York City office, originated the loans through the Fannie MaeDelegated Underwriting & Servicing Small Loan, Fannie Mae DUS adjustable-rate mortgage, Freddie Mac Small Balance Loan and Arbor Realty Trust’s Bridge programs.
Kaushansky said Somerset Apartments, a 240-unit Charlotte, N.C. property, received $5.7 million under Fannie Mae’s DUS ARM Loan product line.
“We originally did this loan as a bridge loan 12 months earlier,” he said. “They needed the bridge loan to get Fannie Mae financing because it was not yet a stabilized asset. The borrower was looking for a quick exit; they didn’t want bridge debt for too long because of concerns about the about interest rate environment. So we were able to provide permanent debt literally 12 month after the bridge loan closed in a seamless execution.”
The seven-year refinance loan amortizes on a 30-year schedule.
A 716-unit student housing property in Binghamton, N.Y. received $12.2 million funded under Arbor Realty Trust’s Bridge product line. “The borrower had significant concerns with respect to a construction loan,” Kaushansky said. “We closed in 30 days and took the borrower out of the construction loan with bridge debt.”
Riverside Apartments, a 32-unit property in Fort Lauderdale, Fla., received $2.3 million through a Freddie Mac Small Loan product line execution. “We were able to get the borrower 80 percent LTV debt on a cash-out refinance with three years of interest-only,” Kaushansky said. “It was clearly advantageous to the borrower to be able to take cash out and lever up to 80 percent with no replacement reserves and no insurance escrow. They got back a large portion of Capex that they spent on the property.” The 10-year acquisition loan amortizes on a 10-year schedule, Kaushansky said.
Kaushansky said Broadway Square Apartments, a 2,470-unit property near Houston’s Hobby Airport, received $1.5 million under Fannie Mae’s Small Loan product line. The seven-year acquisition loan amortizes on a 25-year schedule.
“The seller is a long-term client of Arbor; this was the buyer’s first deal with Arbor,” Kaushansky said. “We were able to get Fannie Mae comfortable with the sponsorship. We were also able to get the borrower $1 million in supplemental debt with seven years left on the loan to help them make capital improvements.”