PGIM Real Estate is showing confidence in a retail sector rebound, as the firm is providing $292 million in floating rate financing to Global Retail Investors for the acquisition of a 16-property retail portfolio in California and Oregon.

“There has been increased enthusiasm around the retail market as fundamentals have improved over the past few years, despite the rise in e-commerce and the impact of COVID,” said Melissa Farrell, head of Debt Originations at PGIM Real Estate (pictured). “The bounce-back in this sector highlights the temporary nature of the pandemic’s impacts and the significant pent-up demand that exists in the market.”

The portfolio consists of 14 shopping centers in California and two in Oregon. The retail centers are comprised primarily of high-performance grocery-anchored properties and totals over 2.2 million square feet. With the funding, Global plans on improving retail fundamentals while enhancing the portfolio through active management, including new leasing and long-term extensions of major tenants.