Through its U.S. core-plus debt strategy on behalf of institutional investors, PGIM Real Estate has provided a $77 million loan to the joint venture of The John Buck Company, Kinship Capital, and Element Properties for the refinancing of two newly constructed properties that are part of the S’PARK master-planned community in Boulder, Colorado. 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).
The first property, Timber, features 150 luxury multifamily units and 2,000 square feet of ground-level retail. The second property, Market, consists of 42,000 square feet of office space, which is fully leased to global technology firm Splunk, Inc., and 11,000 square feet of ground-level retail.
“This transaction presented us with a prime opportunity to add two newly constructed, Class A properties located in a high barrier-to-entry market to our core-plus portfolio,” said Craig Foreman, vice president at PGIM Real Estate who led the origination of the loan on the firm’s behalf. “S’PARK is a one-of-a-kind project and we’re thrilled to play a role in the continued success of this vibrant mixed-use community as the sponsors focus on completing the business plan.”
JLL advised the borrower on the transaction.
The property is located in the Boulder Junction neighborhood of Central Boulder, about 30 miles northwest of downtown Denver. The Denver metro area’s apartment and office markets are expected to outperform over the long-term, owing to high educational attainment and a positive outlook for job and income growth.