Mill Creek Scores $345M Refi From PGIM
The capital retires construction loans for more than 1,500 luxury units.
Mill Creek Residential has secured $345 million in refinancing for a five-asset, 1,501-unit portfolio with assets in New Jersey, Florida, Georgia and Washington. PGIM Real Estate provided the fixed-rate funds through its core investment strategy in a deal arranged by CBRE.
The five Modera communities, all upscale, debuted between 2022 and 2024. Previous construction debt for four of the five properties rose up to $265.1 million, according to Yardi Matrix data. Lenders included Bank of America, Truist Bank, UMB Bank and TD Bank.
Two of the communities—Modera Montville and Berkeley Heights—are in the Garden State, at 340 Changebridge Road in Pine Brook, N.J., and 1 Lone Pine Drive in Berkeley Heights, N.J. New Jersey posted significant year-over-year rent growth, at 4.2 percent as of January. That was well above the national average, which stood at 0.8 percent, according to Yardi Matrix.
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The Sun Belt is home to another pair of Modera properties that got financing, dubbed Coral Springs and Old Ivy. The duo bears the addresses 3210 N. University Drive in Coral Springs, Fla., near Fort Lauderdale, and 3651 Lenox Road, NE, in Atlanta.
Rounding out the collection is Modera Overlake, Mill Creek’s community at 15350 Bel-Red Road in Redmond, Wash., close to Seattle. Though the metro’s inventory grew 4.1 percent year-over-year as of January, advertised asking rents inched up a healthy 2.4 percent during the same interval, Yardi Matrix also reveals.
CBRE Senior Managing Director Mike Riccio, together with First Vice President Anna Paladino and Vice Chairman Jesse Weber, arranged the financing.
Multifamily debt flows
As the Federal Reserve began loosening its grip on interest rates, borrowing picked up the pace in 2024’s third quarter, Jamie Woodwell, vice president & head of commercial real estate research at the Mortgage Bankers Association, previously told Multi-Housing News.
Multifamily originations spiked 56 percent year-over-year through September, MBA’s latest report on outstanding debt shows. Capital is flowing from every type of provider in the debt space at a pace unseen as of late, according to Nate Sittema, vice chairman of CBRE’s debt and structured finance group.
This isn’t the only recent high-profile move from PGIM Real Estate. In October, it teamed up with Citymark Capital to deploy $500 million for purchasing senior loans or structured positions backed by multifamily assets.
