Arbor Realty Trust Monetizes Remaining Equity Interest in Prime

UNIONDALE, N.Y., Aug. 27 /PRNewswire-FirstCall/ -- Arbor Realty Trust, Inc.
(NYSE: ABR), today announced that the Company transferred its remaining 7.5%
interest in Prime Outlets, at a value of approximately $9 million, in exchange
for preferred and common operating partnership units of Lightstone Value Plus
REIT L.P.

The Company owned its 7.5% interest through a 50% non-controlling interest in
an unconsolidated joint venture, which had a 15% interest in Prime Outlets. In
connection with this transaction, through the unconsolidated joint venture,
Arbor borrowed approximately $8 million from Lightstone Value Plus Real Estate
Investment Trust, Inc, which is secured by the preferred and common operating
partnership units and has an eight year term. After five years, the preferred
units may be redeemed by Lightstone Value Plus REIT L.P. for cash and the loan
would become due upon such redemption. The preferred operating partnership
units yield 4.63% and the loan bears interest at a rate of 4%. The Company
also received a broker fee of approximately $2 million related to this
transaction.

The Company will use a majority of the net proceeds from this transaction to
pay down a portion of its outstanding indebtedness with Wachovia Bank.

The Company received approximately $10 million in cash and expects to record
in its third quarter 2009 financial statements, a net investment of
approximately $1 million in this unconsolidated joint venture and income of
approximately $11 million related to this transaction.

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. is a real estate investment trust which invests in a
diversified portfolio of multi-family and commercial real estate related
bridge and mezzanine loans, preferred equity investments, mortgage related
securities and other real estate related assets. Arbor commenced operations in
July 2003 and conducts substantially all of its operations through its
operating partnership, Arbor Realty Limited Partnership and its subsidiaries.
Arbor is externally managed and advised by Arbor Commercial Mortgage, LLC, a
national commercial real estate finance company operating through 11 sales and
origination support offices in the US that specializes in debt and equity
financing for multi-family and commercial real estate.

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements
within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on management's
current expectations and beliefs and are subject to a number of trends and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. Arbor can give no assurance that
its expectations will be attained. Factors that could cause actual results to
differ materially from Arbor's expectations include, but are not limited to,
continued ability to source new investments, changes in interest rates and/or
credit spreads, changes in the real estate and capital markets, and other
risks detailed in the prospectus supplement with respect to this offering and
in Arbor's Annual Report on Form 10-K for the year ended December 31, 2008 and
its other reports filed with the SEC. Such forward-looking statements speak
only as of the date of this press release. Arbor expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in Arbor's
expectations with regard thereto or change in events, conditions, or
circumstances on which any such statement is based.

Contacts: Investors:
Arbor Realty Trust, Inc. Amy Glynn
Paul Elenio, Chief Financial Officer The Ruth Group
516-832-7422 646-536-7023
pelenio@arbor.com aglynn@theruthgroup.com

Media:
Bonnie Habyan, SVP of Marketing
516-229-6615
bhabyan@arbor.com

SOURCE Arbor Realty Trust, Inc.

Paul Elenio, Chief Financial Officer, +1-516-832-7422, pelenio@arbor.com, or
Media, Bonnie Habyan, SVP of Marketing, +1-516-229-6615, bhabyan@arbor.com,
both of Arbor Realty Trust, Inc.; Investors, Amy Glynn, The Ruth Group,
+1-646-536-7023, aglynn@theruthgroup.com