PGIM Real Estate has provided an $18.5 million mezzanine loan on behalf of its structured debt strategy to Rockworth Companies for a mixed-use multifamily and commercial portfolio. PGIM Real Estate is the $210 billion real estate investment and financing business of PGIM (NYSE: PRU).
Located 24 miles north of downtown Salt Lake City in Layton, Utah, the 6.3-acre site will include a newly constructed apartment complex and two commercial buildings. The multifamily portion will total 252 units, and the two commercial buildings will include a total of 15,000 square feet of second-story office and 15,130 square feet of ground-floor retail.
“PGIM Real Estate continues to see significant upside to providing mezzanine loans and preferred equity investments, including the opportunity to invest at relatively moderate leverage levels and based upon current property valuations,” said Daniel Kattan, executive director at PGIM Real Estate who led the financing on the firm’s behalf. “In today’s market, our lending strategy can provide a reliable and stable option for developers like Rockworth, who require innovative solutions to maintain and expand their diverse portfolio.”