UNIONDALE, NY-Arbor Realty Trust expects to raise $135 million in its Initial Public Offering. The REIT, based here, priced each share of common stock at $20. Of the more than 6.27 million shares sold in the offering, 6.25 million are being offered by Arbor and 22,500 are being offered by a stockholder. (The company will not receive any of the proceeds from the shares sold by the stockholder.) In addition, Arbor is offering 500,000 shares to Kojaian Ventures LLC, which is wholly owned by Arbor director C. Michael Kojaian.

Last July, Arbor CFO Rick Herbst told GlobeSt.com he anticipated that within a year, the REIT, organized in 2003, would become a public company and be on the road to raising $1 billion in assets over the next three years. At the time, the firm had just completed a private financing that combined with a concurrent equity contribution by Arbor Commercial Mortgage LLC totaled approximately $165 million.

Now Herbst notes that the firm is “well ahead of that $1-billion goal.” He says the market has been very receptive to Arbor product and that there hasn’t been as much competition as company officials had originally thought. “Two-thirds are repeat customers,” he tells GlobeSt.com, adding that the company will now have more opportunity to do longer-term loans.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.