CHICAGO--(BUSINESS WIRE)--PGIM Real Estate Finance and the New York State Teachers’ Retirement System (NYSTRS) have provided $1.1 billion in financing for the acquisition of a 146-property industrial portfolio. PGIM Real Estate Finance is the commercial mortgage finance business of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate Finance is acting as a co-lender alongside NYSTRS, with each entity providing $550 million. The seven-year, fixed-rate loan is secured by 146 industrial properties in 18 markets across the United States. The properties are 20 years old on average, they have an average finished office space of 10.2 percent, average lease size of 52,000 square feet, and average clear height of 27 feet.
“The wide-ranging geographic footprint of this 146-property portfolio provides a high level of diversification within the increasingly competitive industrial sector for both the borrower and our lending portfolio,” said Tom Goodsite, managing director and transaction lead for PGIM Real Estate Finance. “Industrial fundamentals across the portfolio’s markets have been steadily improving, characterized by declining vacancy and positive net absorption. Our ability to lock in a fixed rate loan for the sponsor in the face of a rising interest rate environment helped to secure this financing for PGIM Real Estate Finance.”
David Gillan, Managing Director of Global Real Estate Investments & Commercial Lending for NYSTRS, added: “In addition to providing our direct lending portfolio with geographic and property-type diversification, this deal strengthens NYSTRS’ long-term relationship with PGIM. We look forward to working with them again in the future.”
The portfolio comprises a total of 21,717,775 square feet nationwide, with its largest concentrations in Chicago, Dallas, Baltimore-Washington, D.C., and Southern California. Among the portfolio’s 327 unique tenants, there is a large concentration of logistics and e-commerce tenants, including strong credit tenants such as Amazon, FedEx, The Home Depot and Coca-Cola.
About PGIM Real Estate Finance
PGIM Real Estate Finance, the commercial mortgage business of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU), is an international full-service, commercial and multifamily mortgage finance business with $91 billion in assets under management and administration as of Dec. 31, 2017. Leveraging a 140-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac and specialized affordable housing programs; FHA; Prudential’s general account; and other institutional investors. For more information, please visit pgimref.com.
With 15 consecutive years of positive third-party institutional net flows, PGIM, the global asset management businesses of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world with more than $1 trillion in assets under management as of Dec. 31, 2017. PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 16 countries across five continents.
Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about PGIM, please visit pgim.com. For more information about Prudential, please visit news.prudential.com.
NYSTRS, with a total net position of approximately $120 billion, is one of the 10-largest and best-funded retirement systems in the nation. The defined benefit plan administered by the System provides retirement and ancillary benefits to over 428,000 New York State public school teachers and administrators.
Within NYSTRS’ broader portfolio, the System currently carries approximately $20 billion of Global Real Estate investments including $5.5 billion of public and private real estate debt investments, which include the System’s private commercial lending platform.
Learn more about PGIM Real Estate Finance: pgimref.com