On behalf of its U.S. core plus debt strategy, PGIM Real Estate has provided a $408 million senior loan facility to an institutional real estate investor for the acquisition of 11 Class A industrial properties across California, Texas, Ohio, Florida, and New Jersey. 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).
“These properties are located across key U.S. infill markets with access to regional, national, and international distribution hubs, robust infrastructure, and favorable demographics,” said Brett Ulrich, executive director at PGIM Real Estate who led the transaction on the firm’s behalf. “The properties have favorable tenancy consisting of large public and private companies within industries that have seen major tailwinds, including e-commerce and logistics, as well as stable recession-resistant industries such as food distribution, food production, and manufacturing.”
The industrial properties, which total approximately 4 million square feet, include 10 existing distribution and cold storage facilities, in addition to the development of a new distribution center. The loan has a four-year term with two one-year extension options.
“Our investors will benefit from this well-leased diversified portfolio of institutional assets in locations with strong market fundamentals, in addition to a financing structure that allows for future acquisition flexibility,” said Steve Bailey, senior portfolio manager for PGIM Real Estate’s U.S. core plus debt strategy. “The portfolio’s diversification across markets and industrial subtypes will also help to mitigate any near-term negative impacts resulting from uncertainties surrounding COVID-19 and the related economic headwinds.”