Recent Transactions

PNC has served as:

• Administrative Agent and Lead Arranger on a $225 million secured term loan backed by a retail center in July 2022.
  
  
• Administrative Agent and Lead Arranger on a $1.2 billion unsecured revolver for a multi-family REIT in July 2022.
  
  
• Administrative Agent and Lead Arranger on a $83.5 million secured construction loan backed by a multi-family property in June 2022.
  
  
• Administrative Agent and Lead Arranger on a $130 million secured construction loan backed by senior housing property in June 2022.
  
  
• Administrative Agent and Lead Arranger on a $900 million unsecured revolver and term loan facility for an open-ended real estate fund in June 2022.
  
  
• Administrative Agent and Lead Arranger on a $298.3 million secured term loan backed by a portfolio of multi-family properties in April 2022.

PNC has tailored these solutions and more:

• A residential and commercial brokerage firm typically accepted fees from buyers at the closing table. In the new virtual closing world created by COVID-19, it became imperative to offer an online solution. The firm opted for PNC’s online payment portal to allow buyers to pay brokerage fees online via ACH or credit card.
  
  
• When COVID-19 closed offices everywhere, a residential property manager in Philadelphia needed a quick way to manage payroll remotely. By quickly moving to ACH origination, the A/P team could process payroll from home while offering employees direct deposit. Fewer trips to the office and fewer checks in the mail allowed for both safety and efficiency in processing weekly payroll.
  
  
• Facing the COVID-19 pandemic, a client determined that they wanted to eliminate the need for any employee to come into the office. They switched from remote deposit scanners to PNC Real Estate’s lockbox solution to deposit rent checks for all their properties without employee intervention. The client also eliminated physical checks and began processing all of their payments through ACH Credit Origination along with some wire transfers.
  
  
• A large retail REIT issued a request for proposal for a $120 million card program which would comprise payables, travel and entertainment as well as Canadian capabilities. With a strong current relationship, proven customer service and card technology that incorporated both USD and CAD programs, PNC Real Estate won the deal.
  
  
• Upon experiencing a fraudulent incident that spanned several months, a commercial real estate developer used PNC’s ACH fraud protection services. ACH Debit Block and Positive Pay helped them automatically reject unauthorized payment attempts.
  
  
• A residential property manager frequently issued prepaid debit cards as rewards to staff and tenants. By switching to PNC’s prepaid card solution, they can now fund cards in real time and issue them on-the-spot, which they could not do through their previous supplier.
  
  
• When a real estate investment trust embarked on an internal systems upgrade, PNC implemented a payables program to outsource their check writing and electronic payments processes, helping improve efficiency for nearly 30,000 payments annually.
  
  
• A self-storage client needed to improve management of expenses for each location. PNC’s corporate purchasing card and expense reporting platform helped enable the property managers to submit monthly reports, allowing the client’s accounting staff to free up nearly 10 hours each month.
  
  
• PNC helped analyze the rate of return on SWEEP balances for a retail-based REIT. After review, the client decided to add SWEEP automation to 31 accounts in order to achieve an improved rate of return.

PNC has provided the following derivatives solutions:

• Village Penasquitos, LP (Relationship Manager: Christian Hicks; DPG Marketer: Rick Pierce)
  In July 2021, PNC worked with a private real estate developer to execute a term sheet for a 10 Year $75mm term loan used to refinance a non-PNC provided construction loan for a 276-unit apartment development. The client, concerned with the possibility of rate volatility occurring in between term sheet execution and loan closing, asked PNC for solutions to fix the rate on the loan prior to an anticipated loan closing in October 2021. PNC’s Derivative Product Group structured and executed a 3 month forward 10 year interest rate swap fixing the rate on the term loan ahead of the anticipated October 2021 loan closing. The swap was executed unsecured, with a guaranty from the sponsor that dropped away at loan closing as the swap became secured by the underlying real estate asset.

• Mead HD Builder, LLC & Mead Investors 1, LLC (Relationship Manager: Mike Muldowney; DPG Marketer: Alec Brown)
  In December 2021 PNC and a private real estate sponsor executed a term sheet for PNC to provide a $42.55mm 20 month construction loan followed by a 10 year mini-perm loan to develop a 386,000 build-to-suit distribution facility. The distribution facility will be leased to a tenant with an initial lease of 20 years beginning at project delivery. As markets began to anticipate inflation and expected Federal Open Market Committee rate hikes, the client engaged PNC’s Derivative Products Group to mitigate their long term interest rate risk over the full 20 year lease. DPG was able to structure a forward starting swap, effective at anticipated deliver date, maturing at the expected lease maturity with the client owning the right to cancel the swap for no cost at the expected mini-perm loan maturity date. This solution provided the client interest rate certainty through their lease maturity in the face of rising interest rates, while also providing flexibility for refinancing options at the mini-perm maturity date.

• Eathial, LLC (Relationship Manager: Virginia Masek; DPG Marketer: Rick Pierce)
  In July 2021, PNC and a private real estate developer closed a $46.5mm 10 year term loan used to refinance a PNC construction loan for a 245-unit multifamily project. Two months in advance of the refinance, the client engaged PNC’s Derivative Products Group to structure an interest rate swap solution that would fix the rate on their expected term loan using the current market environment. The swap was secured by a pledge of the underlying real estate asset.

• MEARF Secured Holdco, LLC (Relationship Manager: Mike Wiedman; DPG Marketer: Rick Pierce)
  PNC serves as Administrative Agent and has $200MM committed to a $750MM Senior Secured Credit Facility for a pool of 21 income-producing office buildings. In February 2021, the client engaged PNC’s Derivative Products Group to execute a fixed rate swap, extending an existing hedge to the full 5Y maturity of the Term Loan portion of the Credit Facility. PNC was able to seamlessly execute the new swap and risk participate pro-rata portions to the client’s bank group, leading to a successful syndication of the interest rate swap.