PGIM Real Estate has formed a joint venture with a public pension fund client of CityView to acquire a 50 percent interest in a portfolio of five Class A multifamily properties in the San Francisco Bay Area. The portfolio is valued at approximately $500 million. PGIM Real Estate, acting on behalf of an institutional real estate investor, is the real estate investment business of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
The portfolio was previously wholly owned by CityView’s client. CityView, a leading investment management and development firm focused on multifamily projects in high-growth areas, will continue to be responsible for managing and leasing the properties for the joint venture.
“Located in the supply-constrained San Francisco Bay Area within high-barrier submarkets with robust employment drivers, each of these properties is among the best-in-class in terms of location, amenities, interior finishes and architectural design,” said Alfonso Munk, Americas chief investment officer for PGIM Real Estate. “We are pleased to establish a new partnership with CityView and leverage their experience in this high-growth market. We look forward to continuing to grow our relationships with both our new partner and CityView on future opportunities.”
The five multifamily properties in the joint venture include:
- Arc Light, a 94-unit property in San Francisco. The adaptive reuse of the California Electric Light Company building was developed in 2013 to LEED Gold certification.
- Potrero Launch, a 196-unit property in San Francisco. Another historic adaptive reuse, the property was built in 2013 to LEED Platinum certification.
- Berkeley Central, a 143-unit property in Berkeley. Built in 2012, it features loft-style floor plans and ground floor commercial space with well-established fitness and performing arts tenants.
- One Hundred Grand, a 166-unit property in Foster City. Built in 2016, it is part of the Pilgrim-Triton master plan, which includes three multifamily communities that collectively represent the first multifamily housing delivered to Foster City in more than 15 years.
- Menlo Park, a 146-unit property in Menlo Park. Delivered in 2017, the property features a garden-style construction, which is a rarity for the San Francisco Peninsula.
“This transaction fulfilled important strategic objectives for our client, and we think PGIM Real Estate’s investment in these assets is a validation of the strength of CityView’s investment and development capabilities, and the value we deliver to investors, communities and residents alike,” said Sean Burton, chief executive officer of CityView. “We look forward to working with PGIM Real Estate on this portfolio and other potential opportunities in the future.”
Tim Hennessey, San Francisco-based managing director and head of West Coast Transactions, led PGIM Real Estate’s investment in the five-property portfolio.