Prudential Mortgage Capital Company has 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.
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.