MILWAUKEE, WI - Northwestern Mutual has refinanced a $233 million tranche of a $460 million portfolio loan secured by 19 apartment communities located in four states across the Sun Belt and West Coast. The remaining debt matures at a later date.
Northwestern Mutual provided the loan to Gables Residential (Gables). Gables is a fully integrated real estate company engaged in multifamily apartment community management, development, construction, acquisition and disposition.
The 19 communities include 3 communities with 1,086 apartment homes in Atlanta, Georgia; 2 communities with 512 apartment homes in Austin, Texas; 3 communities with 481 apartment homes in Dallas, Texas; 4 communities with 1,050 apartment homes in Houston, Texas; 4 communities with 1,114 apartment homes in South Florida; and 3 communities with 412 apartment homes in Southern California.
"The strength of our general account portfolio allows us the flexibility to execute such a complex transaction which will provide long-term value for our policyowners," said Felix Figueroa, Director, Northwestern Mutual Real Estate Investments, LLC. "The communities included in this transaction are diversified, well located, and have proven historical success."
Northwestern Mutual Real Estate Investments, LLC is the wholly owned subsidiary and authorized representative of Northwestern Mutual for the management of Northwestern Mutual's real estate portfolio.
An essential ingredient in maintaining Northwestern Mutual's financial strength and ability to deliver value to policyowners is the performance of the company's $174 billion general account investment portfolio, whose assets back the company's insurance and annuity products.
The investment earnings generated by this portfolio produce capital that helps build the company's strong financial base. They are also the primary determinant of the interest component of the dividend scale for traditional permanent life insurance policies.
Northwestern Mutual has the highest total cash value rate of return among major insurance companies[i]. As part of a well-diversified portfolio primarily invested in investment-grade bonds and other high-quality fixed-income instruments, Northwestern Mutual invests in commercial mortgage loans that it originates in the private market directly with owners of commercial real estate. The portfolio also includes commercial real estate equity investments primarily in apartment, warehouse and office properties.
The company's real estate investments enhance its dividend-paying capacity while supporting economic growth in the communities in which it does business.
Northwestern Mutual, as a part of its diversified investing on behalf of its policyowners, is one of the nation's largest real estate investors, with investments in commercial mortgages, equities and securitized investments across all major property types.