PGIM Real Estate has provided $1.3 billion in core plus and high-yield financing this year, GlobeSt.com has learned exclusively. The milestone includes 19 transactions across the US, ranging from $12 million to $330 million in a variety of different asset classes.

"As cap rates have compressed, borrowers are increasingly seeking out core-plus and value-add real estate strategies because they see a greater ability to meet their return targets in those areas versus in the core space," Marcia Diaz, PGIM Real Estate's Head of U.S. Debt Originations, tells GlobeSt.com. "PGIM Real Estate has been able to respond to this borrower demand with the increased amount of capital we have available to deploy through our core-plus and high-yield products – accompanied by our increased risk appetite and ability to accommodate flexible borrower requirements."

The last year has been marked by tremendous uncertainty, but the firm says that it was able to provide assurance to clients, which helped to drive the strong activity. "Our own lending activity has also been driven by our clients' recognition of PGIM Real Estate's certainty of execution—which is especially critical for borrowers seeking acquisition loans—as well as their trust in our firm's asset management experience. We also benefit from a wide geographic footprint in the U.S., lending across all property types throughout the top 50 MSAs," says Diaz.