PGIM Real Estate has provided more than $1.3 billion in combined core plus and high-yield financing on behalf of investors in its real estate debt strategies — including its open-end core plus debt fund — to date in 2021, amid a rebounding U.S. economy and heightened investor demand for yield. PGIM Real Estate is the real estate investment and financing business of PGIM, the $1.5 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
Total financing activity includes 19 transactions across the U.S., ranging from $12 million to $330 million in size. The deals represent a variety of property types — from a multifamily community in Portland, Oregon to a multi-state industrial portfolio; from the booming self-storage business to the evolving office sector.
“We’ve been taking a broader strategic approach to lending beyond the multifamily and industrial sectors and across the capital stack, looking at all property types throughout the top 50 markets in the U.S.,” said Marcia Diaz, head of U.S. originations for PGIM Real Estate. “This year’s strong loan activity demonstrates our success meeting borrower demand for core plus and high-yield real estate financing and our ability to source debt investments that will also provide a steady stream of income to our investors.”
Recent transactions include:
- North and South Loop Center — Nearly $100 million in floating rate bridge financing to Invesco Advisers, Inc. for the acquisition and lease-up of a six-property industrial portfolio supporting the life sciences industry on Alameda, California’s Bay Farm Island. The loan allowed Invesco to acquire a strategic asset amid increasing demand for facilities that satisfy the high standards of the biotech and biopharma industries.
- NY Self-Storage Portfolio — A floating rate bridge refinancing of a four-property self-storage portfolio located in Westchester and Long Island, New York to the partnership of Harrison Street and Storage Post. The loan will allow the sponsor to complete the final stages of the assets’ repositioning and stabilization.
- Downtown Denver multifamily lofts — A $40 million floating rate bridge loan for the refinancing of a 9-story, 176-unit apartment building located in Denver’s Golden Triangle neighborhood. The refinancing will help the sponsor complete the lease-up and stabilize the property for a possible sale.
- Falcon Parkway — A nearly $13 million preferred equity investment for the development of a two-building, 638,520 square foot, Class-A speculative industrial warehouse facility located on 47.35 acres in Flowery Branch, GA. The fixed rate loan financed the acquisition of the property, 45 miles north of Atlanta along the I-85 corridor, the largest warehouse/distribution submarket in the region.
Diaz added, “Through our tailored and flexible financing solutions, we’re able to help borrowers acquire and position properties to thrive in today’s low cap rate real estate environment. We look forward to continuing this momentum in the core plus mortgage space and completing more mezzanine and preferred equity deals in the months ahead.”