PGIM Real Estate and Citymark Capital have formed a joint venture partnership to deploy $500 million in dedicated capital to acquire senior loans or other structured positions backed by multifamily assets.
The focus will be on providing capital solutions for debt currently held by banks, which face increased regulatory pressure amid a market environment where higher interest rates and tightening credit standards put material pressure on real estate borrowers’ ability to refinance existing loans.
“Over the next 18 months we expect to see a large volume of multifamily loans coming to the market,” said Soultana Reigle, head of U.S. equity and senior portfolio manager for PGIM Real Estate’s Value-Add Strategies. “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.”
With $206 billion in gross assets under management and administration (1), PGIM Real Estate provides investors and borrowers access to a range of real estate equity, real estate debt, agriculture, and impact solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). PGIM Real Estate’s risk management approach, execution capabilities and industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,(2) and the local experience of professionals in 35 cities globally.
Citymark Capital is a leading US real estate investment platform specializing in the multifamily sector. Citymark’s investment philosophy is focused on capital preservation while maximizing return and minimizing risk by identifying investments across the capital stack. With a combined 150 years of commercial real estate and banking industry experience across the leadership team, and a national network of experienced operating partners, brokers, banks, and financial intermediaries, we believe Citymark is positioned to outperform in all market conditions.
