Arbor helps troubled business with $35M.

Arbor Realty Limited Partnership recently provided $35 million in mezzanine financing to facilitate the acquisition of Prime Retail, Inc., a real estate investment firm that owns or controls 36 major outlet centers throughout the United States and Puerto Rico.

Arbor's mezzanine loans are part of a $625.5 million deal that assisted Prime Outlets Acquisition Company, LLC in acquiring PRI. The sale was accomplished by merging Prime Retail into Prime Outlets, an affiliate of The Lightstone Group. The Lightstone Group has been a major owner of industrial and multifamily real estate in the United States.

PRI currently owns and/or controls 10.2 million s/f of gross leasable area, either in its 36 outlets centers or in a 154,000 s/f office building. The properties are geographically diverse, located throughout 26 states, ranging in size from 89,000 s/f community outlet centers to 547,000 s/f premium outlet centers. They were constructed between 1985 and 2000.

The downturn in the economy in the last few years has hurt these outlets centers because planned development efforts have been abandoned. Arbor expects the acquisition to facilitate the stabilization of Prime Retail and its properties and allow for future growth and re-investment.

"We believe that investment in these properties benefits all parties involved," said Ivan Kaufman, chairman of Arbor.

"After thorough research, Arbor has determined that this market presents great growth opportunities and we are pleased to be involved in an effort that will stimulate the economy of communities throughout the country."