PGIM has provided a $33 million bridge loan for the Graceland Retail Center in Columbus, Ohio, Commercial Observer can first report.
The two-year loan, originated as part of the life company’s core-plus lending strategy, includes three one-year extension options and a future funding facility for capital improvements. PGIM’s Christy Lockridge and Craig Foreman led the deal.
Graceland Retail Center is a 320,000 square feet property located at 182 Graceland Boulevard. Its anchor tenants include Kroger, LA Fitness, Michaels and Target. Columbus, Ohio-based developer and owner/operator CASTO owns the property, its website shows.
“The strong, local sponsorship, strength of tenancy and location of the property made this an attractive financing opportunity that meets our investors’ objectives for an income-driven return profile over the life of the loan,” Steve Bailey, managing director and portfolio manager for PGIM’s real estate debt strategies said, in prepared remarks.
“This loan on a grocery-anchored retail center will help the sponsor make improvements at the property to achieve its business plans,” Marcia Diaz, the global head of originations at PGIM Real Estate Finance, added. “This financing represents the first of many we would like to realize in the core-plus space. Our expansion will continue through identifying both stabilized and transitional properties that meet our financing criteria.”
In February, PGIM executives told CO that the company would begin offering financing on more transitional commercial real estate deals with a value-add component. “Core-plus is a natural extension of our core lending strategy,” Diaz explained at the time. “We see demand for this debt product and wanted to be able to provide an option for our borrower clients.”
The product adds to the life company’s variety of loan offerings, which range from mezzanine to preferred equity to agency loans.
David Durning, the president and chief executive officer of PGIM Real Estate Finance, told CO that the new strategy will allow the company to expand its reach and provide debt on assets that the life company has never pursued before.