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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.

In April of this year, Arbor Realty Trust joined the ranks of public REITS, pricing its 6.2 million share offering at $20 per share. The firm reported third-quarter results with a net income increase of 32% from the previous quarter. Additionally, total loans were up 19% from the previous quarter. For the quarter ended Sept. 30, Arbor reported net income of $7.6 million, compared to net income for the quarter ended June 30 of $5.8 million. For the nine months ended Sept. 30, net income totaled $16.5 million.

Total revenues for the quarter were $16.9 million, of which $16.5 million was from the loan and investment portfolio. This is an increase of 41% from the previous quarter. The balance in the loan and investment portfolio increased to $791 million by quarter end, up from $664 million as of June 30. “Our pipeline remains strong and we continue to see significant opportunity to further augment the portfolio,” points out Kaufman.

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