The real estate debt business of PGIM completed $2.1 billion in core plus and high-yield financing on behalf of investors in its real estate debt strategies in the first half of 2022. 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).
Total financing activity includes 18 transactions spread across the United States, ranging in size from $14.5 million to $427.1 million. The deals represent a variety of property types from a multifamily deal in Kansas City, Missouri, to an office deal in Los Angeles. PGIM Real Estate is on track to surpass its final 2021 full-year transaction total of $2.2 billion early in the third quarter of 2022.
“The strong loan activity we’ve seen so far in 2022 speaks to our success in meeting borrower demand for core plus and high-yield real estate financing across the capital stack,” said Melissa Farrell, head of U.S. Debt Originations for PGIM Real Estate. “Despite these times of uncertainty, and with both interest rates and cap rates on the rise, we remain vigilant and are ready to navigate the market with our clients’ best interests in mind. We remain committed to meeting our clients’ needs by offering a wide range of financing products that will also provide strong returns for our investors.”
Recent transactions include:
- Brighton Creek Apartments: A $14.5 million high-yield, fixed-rate preferred equity investment for the acquisition and renovation of a multifamily property in Kansas City, Missouri.
- 5250 Lankershim: A $75.5 million floating-rate bridge loan for the acquisition and lease-up of an office property in Los Angeles.
- BIG 5 Industrial Portfolio: A $49.8 million floating-rate bridge loan for the acquisition and reposition of a cross-collateralized industrial pool with five properties located in distinct markets across the U.S.
- Bella on Canyon: A $39.6 million floating-rate bridge loan for the acquisition and renovation of a multifamily property in Puyallup, Washington.
- Project Brighton: A $277.5 million floating-rate bridge loan to refinance a portfolio of 11 senior living properties with 1,190 units and 1,255 beds located across seven states.
- Metro Self Storage Portfolio: A $35.0 million floating-rate bridge loan on a portfolio of four self-storage properties in lease-up located in three states.
“In the first half of 2022 we’ve seen strong performance in our core plus and high-yield lending platform due to our diversified approach and ability to strategize across the capital stack,” said John Jacobs, managing director, Core Plus Debt at PGIM Real Estate. “We are seeing attractive opportunities in industrial, multifamily, senior housing, and self-storage, and will continue to source debt investments that we expect to benefit our investors in the months to come.”