In mid-2021, Centerspace began considering a refinance of bank debt to take advantage of attractive long-term rates. Given concern over a near-term increase in rates, timing and speed were critical for the Company. Our speed and certainty of execution, flexibility of structure, and ability to work with a small investor group solidified Centerspace’s decision to partner with us.
Centerspace is an owner and operator of apartment communities. Founded in 1970, Centerspace currently owns 79 apartment communities consisting of 14,275 homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota and South Dakota.
Historically, Centerspace primarily utilized mortgage debt for its financing needs. In 2017, the Company announced a shift towards an unsecured financing strategy, which was further developed in 2019 when the Company drew $125 million of senior unsecured notes under a newly-established $150 million Shelf facility. In January 2021, the Shelf was upsized to $225 million and the Company drew $50 million of senior unsecured notes to support portfolio growth and refinancings of secured debt.
In mid-2021, Centerspace began considering a refinance of bank debt to take advantage of attractive long-term rates. The Company was evaluating a few different financing options, including a PGIM-led club transaction. Given concern over a near-term increase in rates, timing and speed were critical for the Company. Our speed and certainty of execution, flexibility of structure, and ability to work with a small investor group solidified Centerspace’s decision to partner with us.
In September 2021, we closed on $25 million of senior unsecured notes as part of a $125 million PGIM-led club transaction. We are pleased to have been a part of this process and look forward to supporting Centerspace’s continued growth.
