PGIM Real Estate has provided $25.9 million in construction mezzanine financing on behalf of their structured debt lending strategy to BG Capital and FreezPak for an industrial cold storage property in Houston. 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).
PGIM Real Estate’s financing is being used for the ground-up development of a cold storage facility, which is 100% leased to FreezPak. The plans for development feature state-of-the-art building specifications, cooling equipment, power, hydrogen fuel cell charging stations, and machinery.
The property is located within TGS Cedar Port, one of the largest master-planned rail and barge industrial parks in the U.S. The industrial park houses several Fortune 500 companies including Walmart, Home Depot, and Sam’s Club.
“The industrial and logistics sector continues to be a core competency of PGIM Real Estate’s debt platform, and we’re pleased to have supported BG Capital and FreezPak’s financing needs for this asset near the Port of Houston,” said Daniel Kattan, executive director at PGIM Real Estate, who led the deal on the firm’s behalf. “We have significant appetite for preferred equity and mezzanine debt for new development and existing assets, and this transaction highlights our active and growing presence in providing structured debt solutions and ability to provide certainty during a volatile time.