Rockworth Cos., a Holladay, Utah-based real estate investment company, has secured an $18.5 million mezzanine loan from PGIM Real Estate for a mixed-use property in Layton, Utah, which will have 252 multifamily units.
Located 24 miles north of downtown Salt Lake City, the 6.3-acre site will include a newly constructed apartment complex and two commercial buildings with more than 30,000 square feet of retail and office space. The commercial buildings will have a total of 15,130 square feet of retail on the ground floor and a total of 15,000 square feet on the second floors.
Layton Apartments will be located adjacent to the new Intermountain Layton Hospital, off of Interstate 15, according to Rockworth’s website. The developer notes that the project will also offer excellent proximity to Hill Air Force Base in Ogden, Utah, as well as to downtown Salt Lake City. Designed by AE Urbia Architects and Engineers of South Jordan, Utah, the residential portion of the project will have Class A amenities including a clubhouse with a game room, fitness center, pickleball courts, fire pits and community gathering areas.
In July 2021, Rockworth received a $29 million construction loan from PCCP to develop a 108-unit multifamily project in Salt Lake City called TwentyOnes. Situated on a 2.5-acre site, that project included 20,500 square feet of ground floor retail space. About a year later, Rockworth sold North Union, a 223-unit multifamily property in the Salt Lake City suburb of Midvale, Utah, to Keller Investments.
PGIM lending strategy
PGIM Real Estate, the $210 billion real estate investment and financing business of PGIM, did not provide details about the Layton loan in its statement on the financing. However, Daniel Kattan, executive director at PGIM Real Estate, who led the financing on the firm’s behalf, said in prepared remarks, that the firm continues to see significant upside in providing mezzanine loans and preferred equity investments. Noting that the lending strategy provides the opportunity to invest at relatively moderate leverage levels and based upon current property valuations, Kattan said that in today’s market, the lending strategy can provide a reliable and stable option for developers like Rockworth, who require innovation solutions to maintain and expand their diverse portfolio.
