Prudential Mortgage Capital Co. and affiliated funds of Perella Weinberg Partners’ asset based value strategy have formed a joint venture to originate commercial mortgages for future securitization, the companies said today.
Prudential Mortgage Capital Co. is the commercial mortgage lending business of Prudential Financial.
The new venture enables Prudential Mortgage Capital to provide its borrowers with access to the CMBS sector without creating a new CMBS warehouse, following the elimination of Prudential’s commercial mortgage securitization business in 2008.
Loans will be originated through Prudential Mortgage Capital’s origination platform, then warehoused and securitized by the joint venture, and serviced by Prudential Asset Resources, one of the largest commercial/multifamily servicers in the industry.
The joint venture, which is structured to adapt to potential regulatory changes, is initially targeting over $1 billion a year in fixed-rate mortgages for stabilized commercial properties across all asset classes. The venture will create a branded vehicle and partner with third parties to issue commercial mortgage backed securities.
The joint venture will be led by Richard Flohr, Sean Beggan and Jean Baker at Prudential Mortgage Capital, along with David Schiff, Billy Jacobs and Roger Nussenblatt of the Perella Weinberg Partners’ asset based value strategy.