Prudential Mortgage Capital Company today announced the expansion of its Agency Gateway Program for multifamily properties. The company’s decision to expand the program reflects greater demand among property owners for bridge financing until they qualify for longer-term loans from Fannie Mae or Freddie Mac. Prudential Mortgage Capital Company is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE:PRU).
The business is looking to originate at least $200 million in program loans in 2013, up from the $100 million targeted under the previous program. Prudential Mortgage Capital Company’s Enhanced Agency Gateway Program provides short-term, floating-rate financing to multifamily borrowers who currently do not qualify for long-term agency loans. This bridge program provides borrowers additional time to stabilize multifamily properties and maximize permanent financing options.
The enhanced program provides loan terms from three months to three years compared with less than 12 months under the existing program. Additionally, the program features greater flexibility, offering loans between $5 million and $100 million for Class B or better multifamily properties in strong markets. Another feature of the expanded program is that the company will make a limited amount of strategic equity investments in funds that develop and purchase multifamily properties in select markets.
“As borrowers increasingly look to upgrade aging properties and seek higher rents commensurate with the market, there is a growing need for financing options to help them achieve their goals. Our Enhanced Agency Gateway Program provides flexible financing solutions for our borrowers and allows us to address this demand,” said Michael McRoberts, managing director and head of Prudential Mortgage Capital’s agency lending platform.Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with more than $72.6 billion in assets under management and administration as of December 31, 2012. Leveraging a 135-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac Program Plus® and specialized affordable housing programs; FHA; Conduit; Prudential’s general account and proprietary balance sheet program; and other institutional investors. The company maintains a loan servicing portfolio of approximately $70.4 billion, as of December 31, 2012. For more information, please visit http://www.prumortgagecapital.com. Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $1.060 trillion of assets under management as of December 31, 2012, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.