Item 8.01 Other Events.

On August 27, 2009, Arbor Realty Trust, Inc. (the "Company") announced that it transferred its remaining 7.5% interest in Prime Outlets Acquisition Company LLC ("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. ("Lightstone LP"), the operating partnership of Lightstone Value Plus Real Estate Investment Trust, Inc. ("Lightstone").

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, the Company borrowed approximately $8 million from Lightstone, 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 LP 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.

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