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Prudential Mortgage Venture Aims for $1B in CMBS

On Friday lending giant ""Prudential Mortgage Capital Company"":http://www3.prudential.com/businesscenter/realestate/pmcc/home/welcome.shtml announced a joint venture with ""Perella Weinberg Partners"":http://www.pwpartners.com/ that will allow the two companies to store and originate future commercial mortgage-backed securities (CMBS).


""Participation in the re-emerging CMBS market is critical to maintaining our leadership position in the commercial mortgage arena,"" David Twardock, president of ""Prudential Mortgage"":http://www3.prudential.com/businesscenter/realestate/pmcc/home/welcome.shtml, said in a statement. ""This is an excellent opportunity to leverage our national origination network and expand the financing options we provide for our borrowers.

""We are proud of our relationship with ""Perella Weinberg"":http://www.pwpartners.com/ and look forward to working with them through this joint venture to better meet our clients' needs,"" he said.

According to the statement, ""Prudential Mortgage"":http://www3.prudential.com/businesscenter/realestate/pmcc/home/welcome.shtml will originate CMBS, then warehouse and securitize the loans via the joint feature before servicing them through Prudential Asset Resources, its commercial and multifamily servicer-arm.


The venture creates new access to CMBS for borrowers, skipping the need for an entirely new CMBS warehouse.

The statement held that the joint venture planned to create more than $1 billion a year in fixed-rate mortgages for a plethora of commercial properties. Third parties will accept and offer CMBS to new borrowers, and applications are available through ""Prudential Mortgage"":http://www3.prudential.com/businesscenter/realestate/pmcc/home/welcome.shtml loan officers.

""Prudential Mortgage's"":http://www3.prudential.com/businesscenter/realestate/pmcc/home/welcome.shtml Richard Flohr, Sean Beggan, and Jean Baker will oversee the endeavor with David Schiff, Billy Jacobs, and Roger Nussenblatt from ""Perella Weinberg Partners"":http://www.pwpartners.com/.

""Today's announcement reflects our continued commitment to partnering with proven teams and businesses to provide specialty finance solutions to underserved capital markets,"" said David Schiff, partner at ""Perella Weinberg Partners"":http://www.pwpartners.com/ and portfolio manager of the asset-based value strategy. ""This joint venture, which unites two like-minded credit cultures, will leverage each entity's core competencies to bring additional liquidity to borrowers and high-quality securities, secured by conservative underwriting on quality assets, to bond investors.""

According to its Web site, ""Perella Weinberg Partners"":http://www.pwpartners.com/, a financial services firm, manages over $1 billion in equity capital via through an asset-based value strategy it founded in 2008.

With some $65 billion in assets and 135 years in business, ""Prudential Mortgage"":http://www3.prudential.com/businesscenter/realestate/pmcc/home/welcome.shtml is a national commercial and multifamily mortgage lender that specializes in real estate finance products for ""Fannie Mae"":http://www.fanniemae.com/, ""Freddie Mac"":http://www.freddiemac.com/, and the ""Federal Housing Administration"":http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.

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