NEW YORK CITY-A joint venture of Prudential Mortgage Capital Co. and Perella Weinberg Partners’ Asset Based Value strategy will once again allow Prudential to give borrowers access to the CMBS market.

The JV is targeting in excess of $1 billion a year in fixed rate mortgages, a figure David Twardock, president of Prudential Mortgage Capital Co. sees are reasonable.

“That’s not going to make us the biggest or the largest,” Twardock says. “Our goal is to do a high quality branded, good credit execution in the same way that we did in the last part of the cycle. And to put it in perspective, we expect to do $9 billion to $10 billion in loans this year, aside from this, so another 10 percent in this execution seems doable for us.”

For Prudential, that last part of the cycle ended in 2008 when it spun down its commercial mortgage securitization business as the market imploded. The transactions in this joint venture will not be carried on Prudential’s books but will still allow it to provide its customers with access to the market.

“This arrangement that we’re entering into is one that’s different, in that our role is more of an operating partner in the transaction,” Twardock says. “We’re more of an operating partner here and the warehousing and hedging of this is not on our books in the same way that it was in the last cycle.”

In the arrangement, Prudential will originate the loans, which will then be warehoused and securitized by the JV. Servicing will be through Prudential Asset Resources.

The JV will be led by Richard Flohr, Sean Beggan and Jean Baker at Prudential Mortgage Capital Co. and David Schiff, Billy Jacobs and Roger Nussenblatt from Perella Weinberg Partners’ Asset Based Value strategy.

According to Twardock, for Prudential, its timing had more to do with tapping into the ability to provide a service than anything else. “We're trying to build relationships with borrowers,” he says, “and in order to do that you have to provide them access to the best execution for their transaction, and this is being able to do that.”