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PGIM Real Estate, Citymark Partner to Acquire Senior Multifamily Loans
PGIM Real Estate and Citymark Capital have formed a joint venture partnership to deploy $500 million in dedicated capital to acquire senior loans or other structured positions backed by multifamily assets. The partnership will acquire loans secured by multifamily properties with lifecycles ranging from new delivery to full stabilization and will focus on both performing and non-performing loans.
The focus will be on providing capital solutions for debt currently held by banks, which face increased regulatory pressure amid a market environment where higher interest rates and tightening credit standards put material pressure on real estate borrowers’ ability to refinance existing loans.
“Over the next 18 months we expect to see a large volume of multifamily loans coming to the market,” said Soultana Reigle, head of U.S. equity and senior portfolio manager for PGIM Real Estate’s Value-Add Strategies. “We believe that our deep experience and capabilities in the residential sector will allow us to take a partnership-like approach to identifying creative capital solutions for banks that also provide attractive opportunities for our investors.”
- ◦Sale/Acquisition
- ◦Financing
