PGIM Private Capital expands Direct Lending presence in New York
PGIM Private Capital has appointed David Thompson as part of an expansion of its U.S. regional coverage.
LOS ANGELES, Sept. 2, 2020 – PGIM Real Estate has arranged a $482 million Fannie Mae credit facility collateralized by six multifamily properties located on the West Coast. The loan has a 10-year interest-only term. PGIM Real Estate is the real estate investment and financing business of PGIM, the $1.4 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
Owned and operated by The Sobrato Organization, the six properties feature a total of 1,223 multifamily units, in addition to one office tenant and four retail tenants. Four of the six properties are located in the San Francisco Bay Area and the other two are in Seattle. “This was an important transaction for us,” said Wes Gardiner, senior vice president and head of multifamily at The Sobrato Organization. “Credit goes to the teams at PGIM Real Estate and Fannie Mae, who worked hard to bring it to a successful conclusion, despite the unusual operating environment.”
“We were thrilled to have the opportunity to work with an existing PGIM Real Estate and Fannie Mae client on the refinancing of a credit facility,” said Jaime Zadra, managing director and head of West Coast originations for PGIM Real Estate. “We were able to navigate uncertain market conditions and the many complexities associated with a transaction of this magnitude to ensure a successful refinancing with favorable terms for our client.”
Zadra led the transaction with her team of Elizabeth Velazquez, executive director, and Robel Abdella, senior investment analyst, alongside Laura Eckhardt, head of structured transactions for PGIM Real Estate’s Agency lending business.
The assets are located in sought-after infill locations with high average asking rents, tight vacancy and positive absorption rates, and historically healthy rent growth. The Bay Area and Seattle each demonstrate favorable demographic trends, with strong median household incomes, proximity to major employment nodes, and access to amenities in San Francisco, San Jose and Seattle.
About PGIM Real Estate
As one of the largest real estate managers in the world with $182.0 billion in gross assets under management and administration,1 PGIM Real Estate strives to deliver exceptional outcomes for investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the $1.4 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate’s rigorous risk management, seamless execution, and extensive industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,2 and the deep local expertise of professionals in 32 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that ignite positive environmental and social impact, while pursuing activities that strengthen communities around the world. For more information visit pgimrealestate.com.
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world3 with more than $1.4 trillion in assets under management as of June 30, 2020. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
1 As of June 30, 2020, net AUM is $120.4 billion and AUA is $39.3 billion.
2 Includes legacy lending through PGIM’s parent company, PFI.
3 Pensions & Investments’ Top Money Managers list, June 1, 2020; based on Prudential Financial, Inc. (PFI) total worldwide assets under management as of March 31, 2020.