The loan incorporates mezzanine financing and Fannie Mae's delegated underwriting and service lenders (DUSTM) program. Arbor chief operating officer Ronald Gaither, who originated the financing, says the loan is interest only for one year and then it begins amortizing on a 28-year schedule. The interest rate is adjustable over Libor.
"This loan was the first closed under the new Arbor 55 Preferred loan product," Gaither says. "Our clients are looking to create as much efficiency with their capital as possible and the 85% loan-to-value that the Arbor 85 Preferred offers helps them achieve that goal."
Arbor's new product line "merges the best elements of the Fannie Mae DUSTM program with the extra proceeds of mezzanine finance provided by Arbor Realty Trust," Gaither adds. Arbor 85 Preferred provides loan to value financing of up to 85%; loan terms of up to 10 years; and amortization of up to 30 years. The minimum loan amount is $5 million.
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