NEW YORK, Dec. 18, 2018 – PGIM Real Estate Finance has secured a $29.3 million unfunded forward commitment from Freddie Mac for NRP Group’s Lake Vue at Red Berry Estates workforce housing development in San Antonio, Texas. PGIM Real Estate Finance is the commercial mortgage finance business of PGIM Inc., the $1 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU). NRP is a full-service developer, general contractor and property manager of multifamily, senior and student housing throughout the United States.
The 10-year, fixed-rate forward commitment will fund upon construction completion and project stabilization, with loan proceeds used to pay off the construction loan, recoup a portion of sponsor equity and provide permanent financing for the to-be-built 330-unit mixed-income development. Fifty percent of the units will be set aside for tenants earning 80 percent of the Area Media Income (AMI), and the balance of the units will be unrestricted. This project is one of the first forward commitments closed under Freddie Mac’s new Non-LIHTC Forwards offering.
“This workforce housing project will provide 165 high-quality affordable housing units and will serve as a catalyst for additional growth and development in San Antonio,” said Alex Viorst, principal at PGIM Real Estate Finance. “We are proud to partner with NRP and Freddie Mac to be a part of this important development that will benefit the local community.”
“Through our partnership with PGIM Real Estate Finance, we provided a forward commitment that will create affordable housing for members of San Antonio’s workforce,” said David Leopold, vice president for Targeted Affordable Sales and Investments at Freddie Mac Multifamily. “Our innovative non-LIHTC forward product is unique to the market. It eliminates interest rate risk, allowing affordable local housing developments like Red Berry Estates to move forward.”
“Through this program, PGIM and Freddie Mac are helping us to create market-rate quality apartment product at moderate-income housing rents. We appreciate their creativity in creating this crucial program for an underserved segment of the multifamily space,” said George A. M. Currall, managing director of Capital Markets at The NRP Group.
Lake Vue at Red Berry Estates is part of a mixed-use master-planned community located on the grounds of the historic Red Berry Mansion. In addition to the Class-A multifamily development that will be built by NRP on the 13.4-acre site, an adjacent parcel will house a 600,000-square-foot office building, and the Red Berry mansion itself, located on a neighboring five-acre parcel, will be used as an events facility. The apartment development will be located just 10 minutes from downtown San Antonio.
The subject will consist of 11 three-story walk-up buildings plus a clubhouse and will include 198 one-bedroom units, 114 two-bedroom units and 18 three-bedroom units. In-unit amenities will include granite countertops, island kitchens, Energy Star-rated appliances, full-size washers and dryers, tile floors, balconies/patios and walk-in closets. Community amenities will include a business center, community room, 24-hour fitness center, swimming pool, detached garages, a dog park, walking trails, and a recreational sports complex that includes a basketball gymnasium, a baseball diamond and a soccer field.
About PGIM Real Estate Finance
PGIM Real Estate Finance, the commercial mortgage business of PGIM, is an international full-service, commercial and multifamily mortgage finance business with $93.4 billion in assets under management and administration as of June 30, 2018. 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.
About PGIM and Prudential Financial, Inc.
With 15 consecutive years of positive third-party institutional net flows, PGIM, the global asset management business 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 September 30, 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 15 countries across five continents. For more information, please visit pgim.com.
Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about Prudential, please visit news.prudential.com.
*As ranked in Pensions & Investments’ Money Managers list, May 2018; based on Prudential Financial, Inc. total worldwide assets under management as of December 31, 2017.