Arbor Realty Trust, Inc. Co-Funds Emerald Empire's Acquisition of Pangea Properties' Chicago Portfolio

Rhea-AI Summary

On Dec. 23, 2022, Arbor Realty Trust (NYSE: ABR) co-funded a significant Fannie Mae Structured Adjustable-Rate Mortgage (SARM) loan as part of Emerald Empire's acquisition of Pangea Properties' Chicago portfolio. This transaction, involving hundreds of properties with over 97% deemed 'affordable,' showcases Arbor's commitment to affordable housing. The deal also ensures job continuity for Pangea Properties' employees in Chicago. Arbor, a noted multifamily lender, leveraged its longstanding partnerships to facilitate this impactful project aimed at promoting housing affordability.

Positive

• Co-funding of a major Fannie Mae SARM loan enhances Arbor's market presence.
• Transaction supports affordable housing initiatives, benefiting community and stakeholders.
• Retention of Chicago-area employees ensures operational continuity and stability.

Negative

• None.

UNIONDALE, N.Y., Dec. 23, 2022 /PRNewswire/ -- Arbor Realty Trust, Inc. (NYSE: ABR ), a leading multifamily and commercial mortgage lender, recently co-funded one of the largest Fannie Mae Structured Adjustable-Rate Mortgage (SARM) loans of 2022 in support of New York-based Emerald Empire's acquisition of Pangea Properties' Chicago portfolio.

The deal was primarily financed by Arbor Realty Trust. NewPoint Real Estate Capital also participated in the transaction.

The sale spans several hundred properties and thousands of units, of which 97% are considered "affordable" at 60% of Area Median Income (AMI). The deal also provides career continuity for Pangea Properties' Chicago-area employees, who will be kept on to manage the properties for Emerald.

"The transaction is representative of the strong social commitment to the provision and preservation of affordable housing shared by both Fannie Mae and Arbor Realty Trust, as well as by Emerald Empire," said Ivan Kaufman, Founder, Chairman and CEO of Arbor Realty Trust. "We have been a Top 10 Fannie Mae DUS^® Multifamily Lender for more than a decade, and the longstanding relationships across our teams equip us to close major transactions in support of housing affordability for urban families."

To support the mission-driven goal of creating equitable financial opportunities for renters by sharing their on-time rent payments with the three major credit bureaus for incorporation in the renters' credit profiles, this portfolio of properties will become participants in Fannie Mae's innovative Multifamily Positive Rent Payment Reporting pilot program.

"Fannie Mae is proud to have worked with Arbor Realty Trust on this impactful transaction" said Michele Evans, Executive Vice president and Head of Multifamily, Fannie Mae. "In addition to providing affordable housing in Chicago, this deal also provides positive rent payment reporting, offering residents opportunities to build credit."

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS^® lender, Freddie Mac Optigo^® Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor's product platform also includes bridge, CMBS, mezzanine and preferred equity lending. Rated by Standard and Poor's and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.

Contacts:
Arbor Realty Trust, Inc.
press@arbor.com 

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SOURCE Arbor Realty Trust

FAQ

What was Arbor Realty Trust's recent acquisition funding announcement?

Arbor Realty Trust announced co-funding a significant Fannie Mae SARM loan for Emerald Empire's acquisition of Pangea Properties' Chicago portfolio.

How many properties are involved in the Arbor Realty Trust deal?

The deal involves several hundred properties with thousands of units, 97% of which are classified as affordable.

What is the significance of the Arbor Realty Trust transaction?

This transaction highlights Arbor's commitment to affordable housing and positively impacts local employment through job retention.

How does the acquisition affect affordable housing in Chicago?

The acquisition aims to preserve and provide affordable housing options for urban families in the Chicago area.

What is the expected impact of the loan on tenants?

The loan will enable positive rent payment reporting, allowing tenants to build credit through their on-time payments.