Anna-Marie Beal
Jones Street Investment Partners secured individual loans from Key Bank, Bangor Savings Bank and Berkshire Bank.
The move marks PGIM’s largest transaction of the year.
Ackman-Ziff arranged the loan on behalf of reAlpha, a specialist in the growing multifamily niche.
The lender funded the loan on behalf of Extell Development, with additional financing from Rexmark and Pacific Western Bank.
The financing demonstrates a belief in the return of business travel as the US emerges from the covid-19 pandemic.
While borrowers are already feeling the impact of higher interest rates, the low DSCRs will present a particular problem as refinancing looms.
Rising interest rates across global markets are having a cooling effect on the volume of assets changing hands and causing a lack of clarity over valuations.
The problem around securing interest rate caps at manageable prices is one factor affecting transaction volume in the US commercial real estate property markets.
The market will have to adjust to negative leverage by either having cap rates go up or investors willing to take a lower return.
The national commercial real estate lender was part of a capital stack that includes Fannie Mae and Freddie Mac.