PGIM Real Estate Arranges $482M West Coast Refi

The Fannie Mae credit facilities involve six apartment properties in the San Francisco Bay area and Seattle.
Naya Apartments. Image courtesy of PGIM Real Estate

West Coast real estate developer The Sobrato Org. has scored a $482 million Fannie Mae credit facility collateralized by six apartment communities, marking one of the largest multifamily refinancing deals in recent months. PGIM Real Estate arranged the loan, which has a 10-year interest-only term.

The transaction involves four properties in the San Francisco Bay Area and two in Seattle, all of them owned and operated by Sobrato, with a total of 1,223 units. The properties also host one office tenant and four retail tenants. The six assets are located in attractive infill locations that have high average asking rents as well as tight vacancy and positive absorption rates, according to a statement by PGIM Real Estate.


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One of the communities is Naya Apartments in Sunnyvale, Calif., a 156-unit property completed by Sobrato in 2016, the statement reveals. Details of the other communities were not provided, but Sobrato’s corporate website lists only two residential properties in Seattle: the 116-unit Axis and the 201-unit Dexter Lake Union.

Naya Apartments at 1085 W. El Camino Real is more than 90 percent occupied, Yardi Matrix data shows. The property, which is sited along State Route 82, northwest of San Jose, includes 41,000 square feet of retail. Axis, located at 123 Second Ave. in Seattle, was completed and acquired by Sobrato in 2008, while Dexter Lake Union, at 1215 Dexter Ave. N., was completed and purchased in 2004. Both properties are at least 95 percent occupied.

Sobrato owns 30 apartment communities totaling 6,700 units along the West Coast, plus more than 75 commercial properties in Silicon Valley.

Major multifamily loans

PGIM Real Estate, part of Prudential Financial Inc.’s global investment management business PGIM, has more than $182 billion of assets under management. The real estate manager recently provided financing for Oxford Properties Group’s $320 million acquisition of Kiara, a 461-unit luxury asset in Seattle, according to public records.

Also in July, the company provided $62 million in Fannie Mae permanent financing for nine apartment properties owned by Finkelstein Timberger East Real Estate in the Bronx, N.Y.

PGIM Real Estate’s Jaime Zadra, managing director & head of West Coast originations, led the refinancing for Sobrato with her team of Executive Director Elizabeth Velazquez and Senior Investment Analyst Robel Abdella, alongside Laura Eckhardt, head of structured transactions for the company’s Agency lending business.