PGIM Real Estate has provided a $356 million loan to Stockbridge Capital Group for the acquisition of a diversified 10-property industrial portfolio. PGIM Real Estate is the real estate investment and financing business of PGIM, the $1.4 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
“We were thrilled to have the opportunity to work with Stockbridge, an existing PGIM Real Estate client, to aid in the success of this transaction,” said Natalia Todorov, executive director at PGIM Real Estate who led the transaction on the firm’s behalf in addition to Elizabeth Velazquez, executive director, Originations. “The strength of the sponsorship and the quality of the assets—as well as rapidly-growing demand across the U.S. logistics market—all support a favorable long-term outlook for this portfolio.”
The Stockbridge transaction team was led by Kristin Renaudin, chief financial officer, and Nicole Stagnaro, managing director and head of Opportunistic and Platform Transactions.
The recently constructed properties are 100% leased, with significant investment-grade tenancy and a long-term weighted average lease term. The properties feature modern specifications, including 36+ foot average clear heights, limited office build-out, and ample parking, in locations that provide good access to their respective area populations.
“The pandemic has only accelerated the continued rise of e-commerce and distribution demand across the United States,” said Bryan McDonnell, PGIM Real Estate’s head of U.S. debt and chair of global debt for PGIM Real Estate. “To that end, these assets are mission-critical to their supply chains—strategically located in close proximity to large population centers and labor pools and provide best-in-class physical attributes. Additionally, the investment-grade tenancy further positions this portfolio for success while mitigating any short-term risks.”