PGIM Real Estate and Citymark Capital have formed a joint venture partnership with $500 million in dedicated capital to acquire senior loans or other structured positions backed by multifamily assets. The focus of the partnership will be on acquiring loans secured by multifamily properties at different stages of development, from new delivery to full stabilization. Both performing and non-performing loans will be considered.
The main goal is to provide solutions for banks facing increased regulatory pressure, as well as real estate borrowers who may struggle with higher interest rates and stricter credit standards when refinancing existing loans. Soultana Reigle, head of U.S. equity and senior portfolio manager for PGIM Real Estate’s Value-Add Strategies, expects a significant volume of multifamily loan opportunities in the next 18 months.
With their extensive experience in the residential sector, PGIM Real Estate believes they can take a collaborative approach with banks to find innovative capital solutions that benefit both parties while also providing attractive opportunities for investors.
