It was a good first half of 2022 for debt borrowers, at least if they were clients of PGIM Real Estate. The real estate debt business of PGIM completed $2.1 billion in core plus and high-yield financing on behalf of investors in its real estate debt strategies for H1. It was a strong performance for the real estate manager, and John Jacobs, managing director, Core Plus Debt at PGIM Real Estate, expects to see more successes in the second half of the year. "We view this environment as an opportunistic time to make good loans, so we continue to look for attractive deals," he tells GlobeSt.com. 

But H2 is unlikely to resemble the first six months of the year in many respects for PGIM Real Estate's debt business. Underwriting is changing to account for economic headwinds and the overall transaction volume is expected to decrease as well.

Also, the debt unit is honing its focus on asset types that will have more durable cash flows. "We are being more selective now in asset classes that we will pursue due to concerns about the macro-economic environment," Jacobs says. These categories include multifamily, industrial and specialty types such as assisted living, life science, self-storage and manufactured housing.