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PGIM Real Estate, on behalf of its core plus debt strategy, has provided a combined $143.5 million of floating-rate bridge loans to LaTerra Development, LLC (LaTerra) for two newly constructed, Class A multifamily properties in greater Los Angeles, California. PGIM Real Estate is the $210 billion real estate investment and financing business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU).
- The Louise Los Feliz features 246 units with 20,487 square feet of ground floor retail space. The property offers three modern interior unit schemes and includes top-notch amenities for residents, such as a large rooftop space with views of the Hollywood sign and Griffith Observatory, in addition to a fitness center, outdoor courtyards and lounge areas.
- The Charlie Santa Monica includes 99 units spread across three boutique-style buildings, in addition to 20,858 square feet of ground floor retail space. The buildings offer residents open-air gathering spaces, fitness centers, resident clubhouses and rooftop decks at each building.
The borrower will use the bridge financing to take out the existing construction loans as they lease-up and stabilize the properties.
"PGIM Real Estate is excited to provide this financing to LaTerra for both The Charlie and The Louise," said Jace Bertges, vice president, Financing at PGIM Real Estate. "These are extremely well-located, high-quality projects with strong demand drivers in high-barrier-to-entry markets. Our core plus lending strategy is well positioned to help meet the needs of borrowers, particularly on competitive apartment communities in lease-up."
"The Los Angeles multifamily market remains strong, and the supply/demand imbalances in the Los Feliz and Santa Monica submarkets in particular are allowing us to move quickly through lease-up of both the residential and retail spaces," said Chris Tourtellotte, managing director at LaTerra. "We've enjoyed working with PGIM Real Estate, and their team brought forth an ease of execution and competitive terms that allowed us to pull out cash equity at the refinancing and provide us term to stabilize both assets and secure longer-term permanent debt financing at a more ideal time in the capital markets environment."
