Item 8.01 Other Events.

On March 31, 2009, Arbor Realty Trust, Inc. (the "Company") issued a press release announcing the closing of a transaction with AR Prime Holdings LLC ("AR Prime"), an entity in which the Company owns two thirds of the membership interests, pursuant to which the Company agreed to transfer 16.67% of its 24.17% interest in Prime Outlets Acquisition Company LLC ("Prime Outlets"), at a value of approximately $37 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 retained a 7.5% ownership interest in Prime Outlets.

As previously disclosed, in June 2008, the Company borrowed from Lightstone approximately $33 million, which was initially secured by the Company's 16.67% interest in Prime Outlets and has a remaining term of approximately seven years. On March 30, 2009, the Company exchanged its 16.67% interest in Prime Outlets for approximately $37 million of preferred and common operating partnership units in Lightstone LP, and the $33 million loan is now secured by the Company's preferred and common operating partnership units in Lightstone LP. In June 2013, 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%.

A copy of the press release is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits Exhibit Number Description 99.1 Press Release, dated March 31, 2009.

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