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GIM Real Estate and Citymark Capital have partnered on a $500 million joint venture to acquire multifamily loans. The partnership aims to capitalize on the upcoming wave of maturing multifamily debt, with over $650 billion scheduled to mature in the next 18 months.

    This influx of maturing debt will require refinancing or restructuring, presenting an opportunity for PGIM Real Estate and Citymark Capital to purchase performing and nonperforming loans. According to Soultana Reigle, head of U.S. equity at PGIM Real Estate, "we expect a large volume of multifamily loans coming to the market over the next 18 months."

    The partnership's strategy is also driven by the limited availability and high costs of single-family homes, making apartments an attractive option for affordable housing. Despite rising refinancing rates, Citymark Capital founder Daniel Walsh expects demand for multifamily loans to remain strong, with only minor discounts expected in the market.

    Walsh notes that the industry will likely need "a little bit of capital from all parties" to navigate the current interest rate environment, but sees a more stable outlook within 18-24 months.