June 5, 2024 – On May 14, 2024, Arbor Realty trust moved to foreclose on Park North Apartments in Houston. This is a non-CLO property; therefore we have no visibility into how this loan has performed to date. Given it is foreclosing: probably not good.
The property appears to have been bought for ~$70m in 2022 with $23m in syndicator equity by Inman Equities. This effectively means that every one of these investors has lost their entire investment.
Viceroy believes Arbor have modified Park North’s loan internally at their own expense. We also believe “fresh equity” from the borrower, which has been grifted from syndicate investors, has been utilized to meet Arbor’s interest expenses going forward