PGIM Real Estate and Citymark Capital Form $500M Joint Venture For Multifamily Loans
The firms expect to take advantage of $650B of multifamily debt scheduled to mature by 2026
Balconies protrude from a relatively new residential apartment building. PHOTO: Sean Gallup/Getty Images
PGIM Real Estate and Citymark Capital have formed a $500 million joint venture to buy performing and nonperforming multifamily loans.
Bloomberg first reported the news.
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PGIM Real Estate, which serves as the $206 billion property arm of Prudential Financial, has formed the loan-purchasing outfit with Citymark to take advantage of the $650 billion of multifamily debt scheduled to mature over the next year and a half, much of which will require either new refinancing capital or the rightsizing of capital stacks with fresh debt and equity.
“Over the next 18 months, we expect to see a large volume of multifamily loans coming to the market,” Soultana Reigle, PGIM Real Estate’s head of U.S. equity, said in a statement.
Citymark Capital founder and CEO Daniel Walsh said in a statement that the lack of single-family homes available to purchase, and the high costs to buy such homes, have made apartments more likely to maintain strong leasing volumes as Americans look for affordable housing options.
Moreover, Walsh added that, even amid the higher refinancing rates, his team doesn’t expect there to be many discounted loan sales in the multifamily sphere.
“It’s really more of a little bit of capital that’s needed from all parties just to get through to a better interest rate environment, say the next 18 to 24 months,” he said.
Brian Pascus can be reached at bpascus@commercialobserver.com
