Arbor Realty Trust Closes $762.6M Commercial Real Estate Loan Securitization with 1.73% Spread
Arbor Realty Trust closed a $762.6 million commercial real estate loan securitization issuing $674.0 million of investment grade notes and retaining $88.6 million of subordinate interests with $100 million capacity to add loans over 180 days. The notes bear a 1.73% spread over Term SOFR and a 30-month reinvestment period.
1. Securitization Closing
On March 23, Arbor Realty Trust closed a $762.6 million commercial real estate loan securitization, issuing $674.0 million of investment grade-rated notes and retaining $88.6 million of subordinate interests, with $100 million of additional loan acquisition capacity available for 180 days.
2. Note Structure and Terms
The investment grade notes carry a weighted average spread of 1.73% over Term SOFR and include a 30-month reinvestment period, allowing principal repayments to be reinvested into qualifying replacement assets subject to conditions. Fitch and Kroll provided ratings for the note classes, excluding the most subordinate tranche.
3. Use of Proceeds
Arbor will use proceeds to repay borrowings under its existing credit facilities, cover transaction expenses, and fund future loans and investments, while the securitization remains on its balance sheet as a financing vehicle until maturity.