PGIM Provides $23M Mezzanine Loan for Salt Lake City Built-to-Rent Development in $87M Commercial Real Estate Financing

PGIM's real estate business has provided a $23 million mezzanine loan for the development of a built-to-rent community in Salt Lake City, Utah, the firm announced Jan. 5. The commercial real estate financing package totals $87 million, with Madison Realty Capital providing a $64 million mortgage loan for the project.

The financing supports Vesta Realty Partners and Woodbury Corporation's development of West Village Townhome, a 186-unit townhome community in Salt Lake City. Walker & Dunlop arranged the loan.

Real Estate Development Details

West Village Townhome features 2-bedroom and 3-bedroom units in 4-story buildings. The property represents one of the few purpose-built townhome communities in Salt Lake City, according to the announcement.

Community amenities include a resort-style pool and spa, sauna and private massage studio, fitness center and yoga studio, pet spa, BBQ area, bike and ski repair station, and a resident clubhouse.

Built-to-Rent Market Fundamentals

"Built-to-rent communities continue to show strong fundamentals, particularly in high-growth markets like Salt Lake City," said Daniel Kattan, executive director for PGIM's real estate business. "This transaction underscores our confidence in the sector and highlights PGIM's capability in providing flexible structured debt solutions to strong operators and developers such as Vesta Realty Partners and Woodbury Corporation."

Josh Zegen, managing principal and co-founder of Madison Realty Capital, said Salt Lake City faces a "clear imbalance among rental townhome offerings," with limited high-end townhomes in urban areas. "Backed by local sponsors with decades of experience delivering residential projects in Utah, we're pleased to deliver financing with PGIM for this development," Zegen said.

About the Lenders

PGIM, the global asset management business of Prudential Financial, Inc., manages $1.5 trillion in assets. PGIM's real estate business is the world's third-largest real estate investment manager, with $216 billion in gross assets under management and administration. The firm has 1,400 investment professionals across 41 offices in 20 countries.

The loan was provided on behalf of PGIM's structured debt strategy.

Sources

PGIM Press Release, Jan. 5, 2026