Arbor Closes 3 Fannie Mae Loans Totaling $8M

2 Charlotte, NC Properties Get Fannie Mae DUS® Loans Totaling $6,675,900

Uniondale, NY (July 30, 2009) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of two (2) loans totaling $6,675,900 under the Fannie Mae DUS® product line. These loans include:

· Woodfield Gardens, Charlotte, NC - 132-unit complex in the amount of $2,680,000 under the Fannie Mae DUS® product line. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.00 percent.

· Milton Road Apartments, Charlotte, NC – 231-unit complex in the amount of $3,995,900 under the Fannie Mae DUS® product line. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.00 percent.

The loans were originated by Alex Kaushansky, (top left photo) Director, in Arbor’s full-service New York City lending office. “Arbor executed both loans simultaneously allowing the borrower to meet his goal of a speedy closing,” said Kaushansky. “We were pleased to deliver in this tight timeframe.”

Shreveport, LA Apartments Obtains $1.35M Loan

Uniondale, NY - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,357,954 loan under the Fannie Mae MAH® product line for the 143-unit complex known as Calvary Crossing in Shreveport, LA.

The 7-year loan amortizes on a 30-year schedule and carries a note rate of 6.17 percent.

The loan was originated by John Kelly, (bottom right photo) Vice President, in Arbor’s full-service Boston, MA lending office.

“This is a 100 percent Project Based Section 8 project that had some additional subsidy layering as well,” said Kelly. “The owner had bought this asset less than a year ago and we were able to restructure his debt to lower his cost of capital and debt service. We were pleased to demonstrate the flexibility of our financing platform for this intricate transaction.”

Contact: Ingrid Principe, iprincipe@arbor.com

Fitch: Specially Serviced U.S. CMBS May Reach $100B by End-2009

NEW YORK, NY-July 30, 2009: With close to $50 billion in U.S. CMBS now in special servicing, that number may approach $100 billion by the year end, representing approximately 12% ($96 billion) of total outstanding CMBS, according to Fitch Ratings in a new report.

"The resources of special servicers will continue to be stretched, which will intensify scrutiny on their preparedness,’ said Managing Director Stephanie Petosa. "Compounding the problem is that many of these loans expected to default are large and complicated loans."

Despite the growth in specially serviced loans, Fitch does not expect the same rate of growth on CMBS delinquency rates.

Fitch is projecting delinquencies on U.S. CMBS to eclipse 5% by the end of 2009. Fitch monitors servicing portfolio volume and is provided year-end and quarterly data from Fitch-rated special servicers.

The data in the report includes information for Fitch and non-Fitch rated CMBS transactions.

Fitch will continue to measure servicer performance through the collection and analysis of management reports from its rated servicers and come to the market with timely commentary as developments unfold.

Contacts:

Stephanie Petosa +1-212-908-0720,

Alyson Weems +1-212-908-0305, New York or

Richard Carlson +1-312-606-2373, Chicago.