Anna-Marie Beal
The Chicago credit union is seeing an uptick in bridge-to-bridge lending.
The Houston-based firm recently refinanced debt on a $50m multifamily project.
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.