Arbor’s Innovative Preferred Equity Solution Delivers Simplicity and Continuity

For too long, multifamily real estate financing solutions have been fragmented, causing borrowers losses of time, effort, and money. To streamline the process, Arbor Realty Trust partnered with Freddie Mac Multifamily to become the first lender to launch a pioneering program that integrates senior loans and private equity under one roof throughout their lifecycles.

Launched last year, Arbor’s Proprietary Preferred Equity behind Freddie Mac Conventional Loans, an innovative approach to raising capital, enables borrowers to close both transactions with a single full-service firm.

Integrated process reduces friction

Coordination can be one of the biggest hurdles to securing a multifamily loan. To close a deal, sponsors often must piece together a network of senior lenders, preferred equity providers, and third-party stakeholders — all with different requirements and timelines.

By aligning senior debt and preferred equity with a single lender, borrowers receive streamlined underwriting, accelerated timelines, and less friction, keeping a strong deal on track rather than derailing it.

One lender for the life of both loans

One of the advantages of Arbor’s new proprietary preferred equity program is that it creates synergies that reduce execution risk and improve deal certainty.

With one lender for all stages of both loans, borrowers gain the benefits of:

• A single point of contact
• One underwriter
• One closing team
• One servicer

The advantages of Arbor’s streamlined solution

By combining two loan closings into one, borrowers can save considerable time and effort in today’s volatile economic environment. Working with a single full-service firm improves coordination and eliminates redundancies, such as the need to obtain duplicate third-party appraisal and environmental reports, enabling faster execution.

Securing preferred equity and a Freddie Mac Conventional Loan through a single lender can also reduce the risk of delays, postponements, or terminated transactions since this streamlined process has fewer points of failure and provides more deal certainty.

Arbor’s Proprietary Preferred Equity behind Freddie Mac Conventional Loans provides a continuity of service that elevates borrowers’ experiences from the traditionally disjointed process. Instead of navigating loan servicing for both products simultaneously, Arbor’s borrowers can receive all their post-closing services under one roof.

Contact us to learn more

As part of a diversified suite of multifamily and single-family rental loan programs, Arbor now offers proprietary preferred equity behind all Freddie Mac Conventional loans we originate. Our borrowers can simultaneously secure a senior loan and preferred equity in one seamless transaction, from an award-winning team with decades-long relationships with Freddie Mac.

Contact an Arbor loan originator today to get started.