Affiliates of New Jersey-based Prudential Real Estate Investors and private real estate investment and development firm Madison Capital have partnered on a $1 billion (€649 million) joint venture to acquire urban retail and mixed-use properties in New York City and other major urban markets.
The joint venture, arranged by real estate investment banking firm Cushman & Wakefield Sonnenblick Goldman, plans to purchase retail and mixed-use properties ranging from $5 million to more than $100 million.
The venture is looking to capitalize on opportunities created by a tighter debt and equity market through the acquisition of the retail portion of hotels, residential and office buildings. Many building owners “need to raise additional capital or monetize a portion of the asset while maintaining ownership and control of the component in which they have expertise,” Steven Kohn, Cushman president and principal, said in a statement.
New York-based Madison Capital will source acquisition opportunities and operate the properties for the joint venture.