SAN FRANCISCO, June 12, 2018 – PGIM Real Estate has formed a joint venture with a public pension fund client of CityView to acquire a 50 percent interest in a portfolio of five Class A multifamily properties in the San Francisco Bay Area. The portfolio is valued at approximately $500 million. PGIM Real Estate, acting on behalf of an institutional real estate investor, is the real estate investment business of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
“We are pleased to establish a new partnership with CityView and leverage their experience in this high-growth market.”
Learn more about
PGIM Real Estate:
The portfolio was previously wholly owned by CityView’s client. CityView, a leading investment management and development firm focused on multifamily projects in high-growth areas, will continue to be responsible for managing and leasing the properties for the joint venture.
“Located in the supply-constrained San Francisco Bay Area within high-barrier submarkets with robust employment drivers, each of these properties is among the best-in-class in terms of location, amenities, interior finishes and architectural design,” said Alfonso Munk, Americas chief investment officer for PGIM Real Estate. “We are pleased to establish a new partnership with CityView and leverage their experience in this high-growth market. We look forward to continuing to grow our relationships with both our new partner and CityView on future opportunities.”
The five multifamily properties in the joint venture include:
• Arc Light, a 94-unit property in San Francisco. The adaptive reuse of the California Electric Light Company building was developed in 2013 to LEED Gold certification.
• Potrero Launch, a 196-unit property in San Francisco. Another historic adaptive reuse, the property was built in 2013 to LEED Platinum certification.
• Berkeley Central, a 143-unit property in Berkeley. Built in 2012, it features loft-style floor plans and ground floor commercial space with well-established fitness and performing arts tenants.
• One Hundred Grand, a 166-unit property in Foster City. Built in 2016, it is part of the Pilgrim-Triton master plan, which includes three multifamily communities that collectively represent the first multifamily housing delivered to Foster City in more than 15 years.
• Menlo Park, a 146-unit property in Menlo Park. Delivered in 2017, the property features a garden-style construction, which is a rarity for the San Francisco Peninsula.
“This transaction fulfilled important strategic objectives for our client, and we think PGIM Real Estate’s investment in these assets is a validation of the strength of CityView’s investment and development capabilities, and the value we deliver to investors, communities and residents alike,” said Sean Burton, chief executive officer of CityView. “We look forward to working with PGIM Real Estate on this portfolio and other potential opportunities in the future.”
Tim Hennessey, San Francisco-based managing director and head of West Coast Transactions, led PGIM Real Estate’s investment in the five-property portfolio.
Founded in 2003, CityView is a premier investment management and development firm dedicated to redefining urban living. Focused on developing multifamily and mixed-use projects in high-growth markets in the Western United States, CityView has attracted some of the largest and most sophisticated public pension plans and financial institutions in the country. The firm currently manages a combination of eight funds and separately managed accounts, which has collectively generated more than $4 billion in urban investment.
With experience across more than 90 projects, CityView’s targeted investment strategy allows it to take a unique holistic approach to uncovering and tapping into the ideal urban way of life, which is why CityView builds its projects next to transit, jobs, restaurants and culture. This ensures that residents live happy, neighborhoods achieve their potential and investments add up to far more than just investor returns. From sophisticated designs and amenities tailored to the local community, each CityView project is built to seamlessly integrate into the fabric of the local neighborhood.
About PGIM Real Estate
PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU). Redefining the real estate investing landscape since 1970, PGIM Real Estate has professionals in 17 cities in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of $69.6 billion ($50.3 billion net) as of March 31, 2018. PGIM Real Estate’s tenured team offers to its global client base a broad range of real estate equity, debt and securities investment strategies that span the risk/return spectrum. For more information, visit pgimrealestate.com.
About PGIM and Prudential Financial, Inc.
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 March 31, 2018. 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.
© 2018 PGIM is the primary asset management business of Prudential Financial, Inc. (PFI). PGIM Real Estate is PGIM’s real estate investment advisory business and operates through PGIM, Inc., a registered investment advisor. Prudential, PGIM, their respective logos as well as the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. PFI of the United States is not affiliated with Prudential plc, a company headquartered in the United Kingdom. Ref: 18BDUFF-AYDJFX