Multifamily lender Arbor Realty Trust reports sharp occupancy declines following federal immigration enforcement actions

CEO Ivan Kaufman links a 45% occupancy rate in foreclosed properties to federal immigration raids, as Arbor Realty Trust faces $570M in loan delinquencies.

By: AXL Media

Published: Mar 3, 2026, 3:28 PM EST

Source: The information in this article was sourced from Bisnow

Enforcement Actions Impacting Portfolio Stability

Arbor Realty Trust, a prominent multifamily bridge lender, has identified federal immigration enforcement as a major catalyst for declining occupancy in its residential assets. During a recent earnings call, CEO Ivan Kaufman revealed that apartment buildings repossessed by the firm through foreclosure are currently averaging a 45% occupancy rate. Kaufman explicitly linked these figures to U.S. Immigration and Customs Enforcement raids, which have reportedly caused immediate and drastic tenant departures in several key markets.

Regional Concentration of Occupancy Loss

The impact of immigration activity on residential stability is most pronounced in Texas, specifically within Houston, San Antonio, and Dallas. However, the lender noted similar trends in Atlanta and certain regions of Florida. Kaufman highlighted the volatility of these shifts, describing scenarios where properties maintained a 90% occupancy rate before plummeting to 65% or 70% virtually overnight following federal interventions. Houston was singled out as being particularly affected by the intersection of immigration policy and property management.

Rising Loan Delinquencies and REO Assets

The financial health of the Real Estate Investment Trust has deteriorated as interest rates spiked and nonperforming assets mounted. Arbor Realty Trust concluded the 2025 fiscal year with $570 million in loan delinquencies and $500 million in real estate owned assets, a substantial increase from the $177 million in REO assets reported at the end of 2024. The number of foreclosed loans surged from six in 2024 to 21 in 2025, illustrating the widening distress among multifamily borrowers within the firm's portfolio.