PGIM Real Estate and Citymark Capital have formed a $500 million joint venture to purchase high-performing and underperforming multifamily loans.
Bloomberg first reported the news.
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PGIM Real Estate, the $206 billion real estate division of Prudential Financial, forms a loan purchasing organization with CityMark to leverage $650 billion in multifamily debt maturing over the next 18 months. did. Either refinancing with new capital or right-sizing the capital stack with new debt and equity is required.
“We expect to see a significant amount of multifamily mortgages coming to market over the next 18 months,” Soultana Reigle, head of U.S. equities at PGIM Real Estate, said in a statement.
Daniel Walsh, founder and CEO of CityMark Capital, said in a statement that the lack of affordable single-family homes and the high cost of purchasing such homes are making it difficult for Americans to afford them. said apartments are increasingly likely to maintain strong rental volumes as investors seek housing options.
Additionally, Walsh added that even as refinance rates rise, his team does not expect to see much discounted loan sales in the multifamily space.
“It’s actually a small amount of capital that is needed from all parties to improve the interest rate environment, for example, over the next 18 to 24 months,” he said.
Brian Pascus can be reached at bpascus@commercialobserver.com.
