Capital is flowing into the market in search of opportunities in the multifamily sector as more than $650 billion in multifamily debt is scheduled to mature between now and 2026.

This week, PGIM Real Estate and Citymark Capital formed a joint venture partnership to deploy $500 million in dedicated capital to acquire senior loans or other structured positions backed by multifamily assets. The program is targeting debt currently held by banks that are facing increased regulatory pressure, higher interest rates and tightening capital standards.

The partners intend to acquire both performing and nonperforming loans where collateral is supported by recovering sector fundamentals. This flexibility will allow the pair to capitalize on various opportunities in the multifamily debt market, including stable income-producing assets and distressed properties that need more attention.