MILWAUKEE — Northwestern Mutual, a private life insurance company and real estate investor, has provided $233 million in loan refinancing for 19 apartment communities in four states across the Sun Belt and West Coast. The loan is a tranche of a $460 million portfolio, the remainder of which matures at a later date.
Northwestern Mutual provided the loan to Atlanta-based Gables Residential, a real estate firm engaged in apartment community management, development, construction, acquisition and disposition.
The 19 communities include three communities with 1,086 apartment homes in Atlanta; two communities with 512 apartment homes in Austin, Texas; three communities with 481 apartment homes in Dallas; four communities with 1,050 apartment homes in Houston; four communities with 1,114 apartment homes in South Florida; and three communities with 412 apartment homes in Southern California.
“The strength of our general account portfolio allows us the flexibility to execute such a complex transaction, which will provide long-term value for our policyowners,” says Felix Figueroa, director of Northwestern Mutual Real Estate Investments. “The communities included in this transaction are diversified, well-located and have proven historical success.”
Northwestern Mutual has the highest total cash value rate of return among major insurance companies, according to a statement from the firm. The company invests in commercial mortgage loans that it originates in the private market directly with commercial real estate owners. The portfolio also includes commercial real estate equity investments primarily in apartment, warehouse and office properties.
Northwestern Mutual Real Estate Investments is the wholly owned subsidiary and authorized representative of Northwestern Mutual for the management of Northwestern Mutual's real estate portfolio. Northwestern Mutual’s assets in its $174 billion general account investment portfolio back the company’s insurance and annuity products.
— John Nelson