PGIM Funds Azusa Warehouses, Los Feliz Apartments for $174M

PGIM Real Estate has showered a three-building industrial park in Azusa and a 246-unit apartment complex in Los Feliz with a combined $174.2 million in financing.

The New Jersey-based real estate arm of insurance giant Prudential Financial loaned $84.2 million to Downtown-based IDS Real Estate Group to buy the fully leased Azusa Industrial Center at 875-935 West Eighth Street, the Commercial Observer reported.

PGIM also loaned $90 million to Century City-based LaTerra Development and New York-based Clarion Partners for The Louise, a newly built apartment complex with 10,500-square-feet of ground-floor shops and restaurants at 1633 North Edgemont Street, the Los Angeles Business Journal reported.

Terms of both financing deals were not disclosed.

IDS Real Estate bought the 23.6-acre San Gabriel Valley industrial park in June for $126 million, according to the Observer, citing public records. The park, built between 1986 and 1987, is near the 210 and 605 freeways.

Jace Bertges of PGIM represented PGIM Real Estate in the financing, while brokers Matt Stewart, Ace Sudah and Daniel Skerrett of JLL represented IDS.

In Los Angeles, brokers Rob Rubano, Brian Share, Max Schafer and Becca Tse of Cushman & Wakefield represented borrowers LaTerra Development and Clarion Partners.

The four-story Louise apartment complex, which replaced a shopping center, has a coworking lounge, rooftop pool, 24-hour fitness center, clubhouse and a private office.

“This was a very competitive financing process,” Share said in a statement. “Debt capital has become harder to access as the year has progressed.”

LaTerra is now working on Burbank Aero Crossings, which will include 862 apartments, 151,000 square feet of offices and 9,700 square feet of shops. The 10-acre project will replace a defunct Fry’s Electronics at 2311 North Hollywood Way.

The developer also aims to build the 71-unit LaTerra Select West Hollywood, the 344-unit Landing in Palmdale, and various storage facilities, according to the Business Journal.

IDS manages a 40 million-square-foot real estate portfolio with $3.6 billion in assets. The firm secured a 143,000-square-foot office lease expansion for China-based ByteDance, parent of social media platform TikTok, in Culver City last summer for undisclosed terms.

PGIM Real Estate serves as the $210 billion global asset financing business for Prudential.

In the past month, PGIM has provided a $455 million debt package to refinance an eight-building industrial portfolio across Southern California; $143.5 million in bridge debt for a pair of newly constructed multifamily projects in L.A.; and $25 million in refinancing for a manufactured housing community in Calabasas, according to the Observer.

— Dana Bartholomew