ALEXANDRIA, Va., Nov. 29, 2018 – PGIM Real Estate Finance has provided a $78 million FHA refinancing loan to Bonaventure Realty Group for The Encore Apartments, an apartment community in Alexandria, Virginia. 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).
The 35-year, fixed rate loan is fully amortizing, non-recourse and approved for green certification and lower mortgage insurance premiums through HUD’s Green MIP program. The loan proceeds will be used by Bonaventure to recover costs incurred for capital improvements.
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“Our longstanding relationship with this family office owner afforded us an intimate understanding of their needs, which is why the FHA/HUD execution was ideal, given their search for attractively priced, long-term debt," said Jason Miller, principal at PGIM Real Estate Finance.
"Using long-term, fully amortizing FHA financing to pay off a maturing Freddie Mac loan allowed the borrower to achieve their financing goals and highlights one of the benefits of working with PGIM – a lender with a variety of capital sources that allow us to find the right execution depending on the market, asset and borrower’s goals,” said Patrick Kempton, managing director at PGIM Real Estate Finance.
“PGIM Real Estate Finance is a team of experts that consistently deliver favorable financing. This deal strengthens our long-term relationship with PGIM Real Estate Finance, and we look forward to working with them again in the future,” said Dwight Dunton at Bonaventure.
The Encore Apartments are located in a desirable neighborhood with good access to primary local roads, shopping, recreation and employment. The project’s location provides for easy access to Washington, D.C., Reagan National Airport, public transportation, and other regional destinations and employment centers.
The Encore Apartments community is a class-A, 461-unit market rate apartment complex originally built between 1966 and 1968. Renovations were completed in 2010, resulting in upgraded units and community amenities. Units include stainless steel appliances, in-unit washer/dryers, granite countertops and updated flooring. Community amenities include a swimming pool, movie theater/club room, fitness center and shuttle service to a nearby rail station.
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 $94.4 billion in assets under management and administration as of September 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.