Jack Taylor, the head of Prudential Real Estate Investors’ global debt unit, has joined Pine River Capital Management to oversee a commercial real estate investment program that will be seeded with $500 million of equity.
He’s been named global head of commercial real estate at Pine River, a Minnetonka, Minn., investment manager, and has been joined by his Pru team members, Stephen Alpart and Steven Plust, who were named managing directors.
Their responsibilities will include oversight of the commercial real estate investment program being planned by Pine River’s affiliate, Two Harbors Investment Corp., a mortgage REIT. It said that it plans to launch a “commercial real estate initiative” that would have an initial equity commitment of $500 million. Additional details could not be learned immediately.
Taylor is well known in the global high-yield debt world. He and Plust joined Pru in 2009 from Five Mile Capital Partners, a Stamford, Conn., investment manager, while Alpart previously was managing director and co-head of opportunistic lending at Capmark Investments of Horsham, Pa.
The three all had worked at Paine Webber and Co. prior to and after the investment bank’s merger with UBS in 2000.
Taylor co-headed UBS’ Americas and European real estate investment-banking operation and had led PaineWebber’s real estate group. At Five Mile, he was portfolio manager for the firm’s Structured Income Fund.
Their addition to the “Pine River team will enable Two Harbors to diversify our portfolio into commercial real estate assets,” explained Thomas Siering, chief executive of the REIT. “The opportunity in the commercial real estate market is attractive.”
The REIT’s assets as of Sept. 30 included a portfolio of residential mortgages with a balance of $4 billion; $12.7 billion of residential mortgage-backed securities, and a residential mortgage servicer affiliate. It also owns shares in Silver Bay Realty Trust Corp., a REIT that invests in single-family homes, which began business as a venture between Two Rivers and Provident Real Estate Advisors.
Showing posts with label Prudential. Show all posts
Showing posts with label Prudential. Show all posts
Tuesday, November 25, 2014
Friday, October 10, 2014
Atlanta Apartments to Sell for $80MM
Pollack Shores Real Estate Group has struck a deal to sell the 341-unit Citizen Perimeter apartment property in the Atlanta suburb of Sandy Springs, Ga., for roughly $80.1 million, or $235,000/unit. The Atlanta apartment specialist had offered the property, at 1125 Hammond Drive, through Engler Financial Group. The $235,000/unit price would be the highest for an apartment property in the Central Perimeter submarket in at least a year.
The area has a super-low 3.2 percent vacancy rate and hasn’t seen any new units come on line since 2011. But that’s changing, as Reis Inc. projects that 691 units will be added to the area’s 26,007-unit inventory this year.
Still, fundamentals are strong enough to drive heated demand for properties that are offered. According to area professionals, property deals are being underwritten with the assumption that rents will increase by 4 percent annually for the next several years.
While the supply of units has remained flat, demand should stay healthy. State Farm Insurance, for instance, will be taking some 585,000 square feet of a 2.2 million-sf mixed-use complex that KDC Real Estate Development and Investments is building nearby. That’s expected to translate to demand for apartment units.
Monthly asking rents at Citizen Perimeter range from $1,290 for a one-bedroom unit with 638 sf to $2,915 for a two-bedroom unit with 1,356 sf. Units, which average 859 sf, include stainless-steel appliances, walk-in closets and kitchen islands. The property includes a saltwater swimming pool, walking trails and courtyard with a theater. It also has a parking garage with 478 spaces.
Citizen Perimeter is three blocks from the Perimeter Mall and minutes from the Dunwoody MARTA light-rail station.
While a $235,000/unit price would be high for an Atlanta property, it’s not the highest. Earlier this year, Prudential Real Estate Investors paid $73.15 million, or about $348,333/unit, for 92 West Paces Ferry Road, with 210 units, and MetLife Real Estate Investors paid $106.5 million, or about $285,523/unit, for the 373-unit Elle of Buckhead. But both of those properties are in the Buckhead submarket, where higher rents are the norm.
The area has a super-low 3.2 percent vacancy rate and hasn’t seen any new units come on line since 2011. But that’s changing, as Reis Inc. projects that 691 units will be added to the area’s 26,007-unit inventory this year.
Still, fundamentals are strong enough to drive heated demand for properties that are offered. According to area professionals, property deals are being underwritten with the assumption that rents will increase by 4 percent annually for the next several years.
While the supply of units has remained flat, demand should stay healthy. State Farm Insurance, for instance, will be taking some 585,000 square feet of a 2.2 million-sf mixed-use complex that KDC Real Estate Development and Investments is building nearby. That’s expected to translate to demand for apartment units.
Monthly asking rents at Citizen Perimeter range from $1,290 for a one-bedroom unit with 638 sf to $2,915 for a two-bedroom unit with 1,356 sf. Units, which average 859 sf, include stainless-steel appliances, walk-in closets and kitchen islands. The property includes a saltwater swimming pool, walking trails and courtyard with a theater. It also has a parking garage with 478 spaces.
Citizen Perimeter is three blocks from the Perimeter Mall and minutes from the Dunwoody MARTA light-rail station.
While a $235,000/unit price would be high for an Atlanta property, it’s not the highest. Earlier this year, Prudential Real Estate Investors paid $73.15 million, or about $348,333/unit, for 92 West Paces Ferry Road, with 210 units, and MetLife Real Estate Investors paid $106.5 million, or about $285,523/unit, for the 373-unit Elle of Buckhead. But both of those properties are in the Buckhead submarket, where higher rents are the norm.
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