PGIM Secures $295M Green Loan

West Edge

PGIM Real Estate has secured a $295 million green financing package on behalf of its leading core real estate fund in the U.S. The debt is backed by the 340-unit West Edge in Seattle, which PGIM acquired in February for $292.8 million, Yardi Matrix data shows.

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Urban Visions sold the LEED Gold-certified 39-story residential tower in the Belltown submarket. Completed in 2018, the green building features up to three-bedroom units with floorplans averaging 984 square feet. West Edge includes two entertainment suites, a lounge with adjoining open-air terraces, a conference room, a fitness center and a rooftop terrace, among other amenities, as well as 11,000 square feet of retail space, which is fully leased.

In the first half of the year, 81 communities totaling 12,953 units across the Seattle metro received some form of financing, with loans originated in this period amounting to more than $2.7 billion, according to Yardi Matrix. Of that total, more than $480 million was for green buildings or developments that are proposed for LEED designation.

In June, Cushman & Wakefield assisted Security Properties in obtaining $193 million in debt and joint venture equity for the development of The Confidential, a 212-unit mixed-use project less than a mile away from West Edge. Designed to achieve LEED Silver certification, the property is expected to come online in 2024.

PGIM Real Estate closed last year with nearly $22.4 billion in originations globally, representing an approximately 15 percent growth compared to 2020, driven by growth across bridge lending and preferred equity solutions.

In addition to PGIM Real Estate’s U.S. core real estate fund, which has a five-star Global Real Estate Sustainability Benchmark (GRESB) rating, the real estate investment and financing firm also remains an active investor with more than 70 percent of its multifamily and office portfolio classified as green buildings.

In early June, a partnership between CARROLL and PGIM sold a 3,564-unit multifamily portfolio of 12 properties across the Sun Belt for $885.5 million. In March, as asset manager of NEX, a large mall in North-East Singapore, PGIM secured a $900 million green refinancing package originated by DBS, OCBC Bank and UOB. The retail mall has a BCA Green Mark Goldplus certification.