Thoughts on working at Arbor these days given all the craziness going on with them? I used to be on the agency lending side and always thought they were sketchy.
Would a step up in role and responsibility be worth any amount of money if you’re coming another firm with a better reputation?
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Based on the most helpful WSO content, Arbor Realty Trust has faced significant challenges, including foreclosures like the $230 million multifamily deal in Houston. This situation highlights potential capitalization issues and operational challenges, particularly with Class C assets and CLO loans. These factors could indicate instability within the firm.
If you're considering a move to Arbor, weigh the following:
Reputation Risk: Arbor's reputation has been questioned, as you mentioned, and this could impact your professional brand. Moving from a firm with a better reputation to one with perceived instability might not be ideal unless the role offers substantial career growth.
Role and Responsibility: If the new role at Arbor provides a significant step up in responsibility, exposure, or skill-building, it might be worth considering. However, ensure that the potential benefits outweigh the risks associated with the firm's current challenges.
Long-Term Stability: Assess Arbor's financial health and strategic direction. If the firm is struggling with capitalization or operational inefficiencies, it could lead to job insecurity.
Ultimately, while a step up in role and responsibility is appealing, the firm's reputation and stability should be carefully evaluated. If you're coming from a more reputable and stable firm, the move might not be worth the potential risks unless the opportunity is truly transformative for your career.
Sources: Thoughts on Investor Relations? A good or bad move?, Ranking of PERE 50 firms for Acquisitions Analyst out of UG?, Q&A: REIT Acquisitions Associate, Ares Capital Management - Culture, Status, Word on the Street, Career Advice out of Undergard - Development vs Investment
Arbor has had a decent amount of leadership turnover due to the fallout from many broker issues (Meridian). Changes happened last year, and beginning this year, I assume there will be decent mid-level and junior experienced changes as people figure out if they mesh with the new person they report to. From what I heard, they handle Meridian's house accounts, which were never involved in the fraud, and still have a decent other flow. Still a top lender in the space. I have a feeling that even though Basis and Homestreet sold to Regional banks, they have promised to grow. Agency lending is becoming more and more narrowed to the top 10-12 shops. Arbor is one of them; I'd go there if the right opportunity came along. It's Arbor; don't think they are going anywhere.
Thanks for the response. I agree they are not going anywhere, but are they looked down upon by peers in the agency space like Greystone, Berkadia, or CBRE? My old roommate used to work at one of the firms I mentioned and always talked shit about Arbor, warranted or not.
Idk if Berkedia or CBRE are looked down on since they are typically a top shop for volume, didn't really have any fallout from the broker fraud investigations, and have some decent IS bridge to agency volume. Now of course there are teams at all lenders that are brutal to be on. Greystone was the sketchiest at the time and had some issues with the investigation; they weren't as well connected to the agencies as Arbor or had the volume to be untouchable, and they were way bigger than the other lenders connected in any sense. I think they just hired a new CEO, so the rep is changing. Out of the top 10 shops, the only one no one really talks smack about is Wells or PGIM; they are just powerhouses and kind of run very streamlined and transactional.
Ignoring corporate headlines, the debt team sees a lot of volume. Not sure what their hit rate is but I’d guess standard for those in the space. You can definitely bet you’ll be exposed to transactions (likely all multifamily if that’s your thing) but doing deals is doing deals, period.
If you’re considering an opportunity there (based on your title I’m assuming at least associate/VP level), I’d ask questions from the viewpoint of an originator (fee splits, team breakdown, goal targets, etc).
On the coming from a more reputable firm, most people coming from places like that don’t necessarily take a step down but more so “away” from whatever the shop was. For example I work at a BB and hate it. If I left for a relatively unknown MM credit fund, I wouldn’t consider that a step down, rather a move to what I am interested in. If that’s the case here, don’t give it a second thought.
Appreciate the response. I used to work at a debt firm who did a lot of MF along with other assets so that's fine with me. And noted on what questions to ask - I had those in mind too, just hope the answers I get are accurate.
Curious why you hate your BB job? Always figured those were solid places to be but your analogy makes sense.
Because it's a massive balance sheet bank with a bunch a morons running around at all levels. Simple as that. Not to mention standard bank admin tasks that will crush your soul like portfolio surveillance and covenant monitoring. I simply could not give a one ounce of a fuck about anything like that, it truly is the worst part of the job.
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