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PGIM, the $1.4 trillion global investment management business of Prudential Financial, Inc., has expanded the portfolio of the PGIM Real Estate Fund, Inc. with the acquisition of The Arbor in the Riverdale neighborhood of the Bronx. The 127-unit housing community, located at 3260 Henry Hudson Parkway, traded at a gross capitalization of $73.5 million and marks the fund’s 10th property acquisition.
The transaction was structured as a sale-leaseback with Columbia University, which has been using The Arbor to house students, faculty, and staff. As part of the deal, the PGIM Real Estate Fund acquired the property in a joint venture with Fetner Properties, aligning an institutional fund with an experienced real estate partner for this asset.
Under the sale-leaseback arrangement, Columbia University will continue to occupy the property for a period, after which the ownership venture plans to transition the asset to a new leasing strategy. Beginning in July 2026, apartments at The Arbor are expected to be re-leased in two phases, providing the joint venture with an opportunity to reset tenancy and potentially reposition the resident mix over time.
The business plan for The Arbor includes a value-add capital improvement program to be executed as units roll. While specific upgrades were not detailed, the planned improvements underscore the investors’ intention to enhance the asset beyond its current condition as it moves through the phased re-leasing process.
With this acquisition, the PGIM Real Estate Fund reports that it has now completed 10 property acquisitions, deployed $260 million in capital, and accumulated a portfolio with more than $632 million in gross property value. According to Darin Bright, senior portfolio manager for the PGIM Real Estate Fund, these milestones serve as proof points for the fund’s strategy and its broader effort to make institutional-quality private real estate accessible to a wider base of investors.
The Arbor transaction reflects continued institutional interest in housing assets in established neighborhoods like Riverdale, particularly where existing demand from university-related occupants provides a basis for both current income and future value-add initiatives.
The post PGIM JV Buys The Arbor Riverdale Housing from Columbia University for $73.5M appeared first on CRE Market Beat.
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