Dealmaker: PGIM, NYSTRS Provide $1.1B for Industrial Portfolio

PGIM Real Estate Finance, Newark, N.J., and the New York State Teachers’ Retirement System, New York, provided $1.1 billion in financing for a 146-property industrial property portfolio.

PGIM Real Estate Finance acted as co-lender with NYSTRS; each entity provided $550 million. The seven-year fixed-rate loan is secured by properties in 18 markets across the country. The subject properties average 52,000 square feet with 10.2 percent finished office space and a 27-foot clear height.

“The wide-ranging geographic footprint of this 146-property portfolio provides a high level of diversification within the increasingly competitive industrial sector for both the borrower and our lending portfolio,” said PGIM Real Estate Finance Managing Director Tom Goodsite. “Industrial fundamentals across the portfolio’s markets have been steadily improving, characterized by declining vacancy and positive net absorption.”

Goodsite said PGIM and NYSTRS’ ability to lock in a fixed-rate loan for the sponsor in a rising interest rate environment appealed to the borrower.

NYSTRS Managing Director of Global Real Estate Investments and Commercial Lending David Gillan said the deal gave the fund’s direct lending portfolio geographic and property-type diversification.

The portfolio totals 21.7 million square feet nationwide with concentrations in Chicago, Dallas, Baltimore-Washington, D.C. and southern California. There are many logistics and e-commerce tenants among the portfolio’s 327 tenants, including Amazon, FedEx and The Home Depot.