Arbor Launches Innovative Preferred Equity Product Behind Freddie Mac Conventional Loans

Arbor Realty Trust’s innovative new program, Proprietary Preferred Equity behind the Freddie Mac Conventional loans, allows a borrower to simultaneously secure a senior loan and preferred equity in one transaction, under one roof. In just one transaction, you can expect best-in-class execution from one of the longest-tenured Freddie Mac Optigo® Seller/Servicers without headaches or delays.

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.”

Arbor’s Proprietary Preferred Equity Terms

Arbor’s pioneering new program, Proprietary Preferred Equity behind Freddie Mac Conventional loans, is available right now to all borrowers. 

• Preferred equity amounts generally range from $3M to $25M 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.   

“This new product has many unique and flexible features designed to fit a wide range of scenarios,” said Arbor’s Jean-Laurent Pouliot, Managing Director, Senior Production Officer. “Backed by our best-in-class servicing, Arbor Proprietary Preferred Equity is a program like no other on the market.”

Borrowers who take advantage of this new program enjoy the benefits of working with Arbor’s experienced team all the way through servicing without interruption.

Growing Financial Partnerships Since 1993

For more than 30 years, Arbor has been a trusted financing source for multifamily borrowers nationwide. Arbor led all other lenders in Freddie Mac Workforce Housing Rent Preservation lending in 2024 and has consistently been named a top Small Balance Loan lender.

 Our Freddie Mac Multifamily platform provides access to innovative multifamily financing products, including Workforce Housing Preservation. Contact us to learn more about Arbor’s Proprietary Preferred Equity behind Freddie Mac Conventional loans.