PGIM Real Estate and Citymark Capital have joined forces to create a joint venture partnership with $500 million in dedicated funds. Their goal is to acquire senior loans or other structured positions backed by multifamily assets. This includes loans secured by multifamily properties at various stages of development, from new delivery to full stabilization, and will target both performing and non-performing loans.
The focus of this partnership is on providing capital solutions for debt currently held by banks. With increasing regulatory pressure and a market environment where interest rates are rising and credit standards are tightening, real estate borrowers may struggle to refinance existing loans. The joint venture aims to address this issue by acquiring these types of loans.
Accordingly, Soultana Reigle, head of U.S equity at PGIM Real Estate’s Value-Add Strategies division stated that they expect a significant number of multifamily loan opportunities over the next 18 months. She also expressed confidence in their ability to use their expertise in the residential sector to identify creative capital solutions for banks while also offering attractive investment opportunities for their investors.
Overall, PGIM Real Estate’s collaboration with Citymark Capital presents an exciting opportunity for both parties as they work towards acquiring senior multifamily loans together.
