Increased lending caps from GSEs will boost affordable housing sustainability, PGIM's director says.
The investment will help to drive product development.
The company anticipates lending volume of about $1.5bn in 2021.
Institutional allocations are also favoring this segment of the credit markets.
The Chicago multifamily office believes that its low leverage and high-quality locations allow conservative lenders to get comfortable with the risks.
The firm, along with partner Greystar, recently broke ground on a suburban Denver apartment development.
The debt fund manager has originated about $2.5bn of new loans so far this year.
The commercial property market needs to focus less on cosmetic changes to properties and more to legitimate energy efficiency and sustainability.
The newly listed asset manager acquired the Chicago-based net lease specialist for $1.6bn. Oak Street says the deal paves the way for further growth.
Market participants foresee some potential integrational and operational issues when lenders step away from LIBOR on December 31.