David Durning

NEWARK, NJ–PGIM Real Estate Finance, the commercial mortgage business of PGIM, reports that it originated $8.1 billion in commercial mortgage financing in the first half of 2018, much of it propelled by the industrial asset class with lending up 33% compared to the same period last year. PGIM Real Estate Finance expects this trajectory to continue. “In the second half of the year, we plan to build on this momentum and target key sectors such as industrial and multifamily, which we believe will be the best performers at this point in an elongated real estate cycle,” David Durning, CEO of PGIM Real Estate Finance, says in a prepared statement.

Another driver of business has been over $425 million in core-plus financing, which targets properties that can generate value from minor upgrades. In this category, says Marcia Diaz, national head of originations, there has been strong interest from borrowers who need debt to complete light transitional or value-added work at their properties. She said PGIM Real Estate Finance expects this segment to grow over the coming years.

$7.49B So Far This Year

The unit provided $7.49 billion in financing to US multifamily, industrial, office, retail and other sectors, and $622 million in international markets such as Australia, Japan, the UK and other European nations, with a large concentration in Australia and the UK.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

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