PNC Stays Active in Turbulent Times, with Deals Like $214M for Jersey M-F
- Jan 28, 2009
Despite the turbulent times, big real estate loans are still being made and Pittsburgh-based PNC is among those that are actively doling out financing. PNC Real Estate Finance has arranged a $214 million construction loan for The Monaco, a luxury apartment project in Jersey City, N.J., with PNC Capital Markets L.L.C. leading the syndication of the deal with six other banks. Monaco North Urban Renewal L.L.C.–a joint venture involving Roseland Property Co., Prudential Insurance Co. of America, Garden State Development Inc. and Hartz Mountain Industries Inc.–was the recipient of the three-year loan. Roseland is the developer for the joint venture project, which broke ground in December. The Monaco was originally conceived as a condominium property, but as the condo craze fizzled, the concept was switched to apartments. Upon completion, the development will feature the 281-unit Monaco South tower and the 243-unit Monaco North tower. The property will also offer underground parking accommodations for approximately 500 vehicles, as well as ground-level retail space totaling 12,300 square feet. Given the status of the apartment market in New Jersey, PNC’s loan to Monaco North Urban can be viewed as a good risk. While the apartment vacancy rate in the state is expected to increase due to continued employment losses, it will still only reach 4.8 percent, Marcus & Millichap Real Estate Investment Services forecasts in its 2009 National Apartment Report. Two other newly announced PNC transactions indicate that the company’s faith in the apartment market is hardly limited to the Garden State. PNC MultiFamily Capital provided joint venture partners Miller Development Co. and Herriman Apartment Associates L.L.C. with a $48.9 million FHA-insured construction/permanent loan for the Farmgate Apartments at Midas Creek, a mixed-income residential project in Herriman, Utah. And in Spokane Valley, Wash., PNC ARCS originated a $16 million loan through Freddie Mac for the refinancing the 272-unit Whimsical Pig Apartments. National apartment fundamentals, according to the Marcus & Millichap report, have been the most stable of any commercial property sector throughout the real estate downturn.