Arbor Closes $50M Credit Facility

UNIONDALE, MY-Arbor Realty Trust Inc., a publicly traded REIT, closed a $50-million unsecured revolving credit facility with affiliates of San Francisco-based Watershed Asset Management LLC. The facility has a term of one-year with two one-year renewal options and bears interest at a spread over Libor of 700 basis points over the initial term. Arbor, which started up in July 2003, conducts substantially all of its operations through its locally based operating partnership, Arbor Realty LP.

The REIT, which invests in multifamily and commercial real estate related bridge and mezzanine loans, preferred equity investments, mortgage related securities and other real estate related assets, recently opened a New York City office to help “better communicate with investors and borrowers.”

“This transaction adds additional diversification to our financing sources and is a reflection of the successful execution of our business strategy,” says Ivan Kaufman, CEO of Arbor Realty Trust. “It gives Arbor flexibility to increase our lending capacity and grow the portfolio.” Since its inception, the firm has originated more than $770 million in loans.