PGIM Real Estate and US real estate private equity investor Citymark Capital have partnered to invest $500m (€464m) in multifamily loans.
The joint venture has been created to deploy the capital into senior loans or other structured positions secured by multifamily properties that have lifecycles ranging from new delivery to full stabilisation.
The venture intends to focus on acquiring both performing and non-performing loans, where the collateral is supported by recovering sector fundamentals.
Soultana Reigle, head of US equity and senior portfolio manager for PGIM Real Estate’s value-add strategies, said: “Over the next 18 months we expect to see a large volume of multifamily loans coming to the market.
“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.”
Daniel Walsh, CEO and founder of Citymark Capital, said: “We are thrilled to partner with PGIM Real Estate to leverage Citymark’s strong banking background and long-standing borrower relationships to provide an opportunity for structured financing solutions across the capital stack.
“Our combined multifamily investment expertise and proven asset management capabilities, coupled with the scale of PGIM Real Estate’s existing residential portfolio and a proven track record of successful transactions, provide for the creation of a programme to underwrite collateral on a more granular basis. This collaboration brings the best of both firms together on behalf of our clients.”
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