This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

PREI® Launches Fifth U.S. Property Fund With Acquisitions In San Diego, San Francisco, And New York City

Stocks in this article: PRU

Prudential Real Estate Investors, continuing its successful series of closed-end real estate funds managed on behalf of German investors, has acquired several properties following the recent closing of its $430 million U.S. Property Fund V. PREI® is the real estate investment management and advisory business of Prudential Financial, Inc. (NYSE:PRU).

Most recently, PREI has reached an agreement to acquire the Rio San Diego from Jones Lang LaSalle. The six-story, 190,000 square foot office building in Mission Valley suburb of San Diego is 92 percent leased. It’s the second time a USPF fund has owned the property, and in this most recent transaction, PREI has reached an agreement to acquire it for $56 million—20 percent less than the price the company sold it for about seven years ago.

Additionally, as part of its core/core plus strategy, USPF V has also invested in two office buildings in prime locations. The first is 575 Lexington Ave. in New York City, and the second is 650 California St. in San Francisco. The fund, in a joint venture with Alliance Residential acquired Broadstone North Central, a 225-unit residential property in Phoenix. The fund has also secured apartment developments in Houston and Dallas.

“We are very pleased to have reached this level of equity commitments for continued U.S. investments,” says David Pahl, senior portfolio manager for PREI. “We’re grateful for the tremendous support and confidence our German investors place with us and we are very optimistic about the investment environment over the next several years in the U.S.”

Since the first U.S. Property Fund was created in 1994, more than 80 properties have been acquired with a total investment of more than $3.7 billion for the entire range of funds.

USPF V continues the balanced investment strategy of the predecessor funds. The focus of office investments are in premium locations in major office markets such as Manhattan, Washington, DC, Boston, Los Angeles as well as other ‘next tier’ markets. This core-plus strategy is complimented with a minor allocation to apartment development in infill, high growth markets. With the funds raised equity capital and a 60% debt financing at fund level, real estate investments of approx. $1 billion can be made.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs