SAN DIEGO — It was a banner year for Prudential Mortgage Capital Co. in 2012. The lender provided $12.2 billion in financing for commercial mortgages globally, a 26 percent increase over the prior year and the company’s second highest total ever in yearly production. The highest annual production occurred in 2007 when Prudential provided $14.7 billion globally.
The announcement came Monday during the Mortgage Bankers Association’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo 2013 at the Manchester Grand Hyatt San Diego. Approximately 2,600 industry professionals have registered for the show, which runs through mid-day Wednesday.
Prudential Mortgage Capital — the commercial mortgage lending business of Prudential Financial Inc. (NYSE: PRU) — said that the company has as much as $13 billion available for financing in 2013.
The 2012 results, which exceeded the company’s $11.6 billion target, includes more than ¥ 24 billion for new loans in Japan. The total also includes the company’s expansion into Europe with £87.5 million in new loans in the United Kingdom originated by its London operation.
“The combination of our diverse platform, international expansion and relationships across the industry led to record production levels in our portfolio and agency lending programs,” said David Durning, senior managing director and head of originations for Prudential Mortgage Capital.
“In 2013, we will continue our focus on growth with a special emphasis on our portfolio program, our Agency Gateway Program for multifamily properties, our FHA healthcare lending initiative, our CMBS program and expansion of production in Europe and Japan,” adds Durning, who will succeed David Twardock as company president beginning in April.
Twardock, who has been at the helm since 1998, said that he is retiring at a time when Prudential Mortgage Capital is in terrific shape after weathering a particularly tough real estate cycle. “The business is in very strong hands. It’s a great team at Pru — I’m talking about David Durning and all the way through the organization. That was the No. 1 reason for stepping down now.”
The move also gives Twardock an opportunity to try something different. He wants to dabble in small-scale personal investing, for example. “You only get one shot in life. I’m very fortunate to have both the financial and personal flexibility to do what I want to do at this point. I think 14 years running a business is a good long term. And I think it’s probably healthy for me and healthy for the business to do different things.”
Twardock has 24 years of experience at Prudential, having joined the company as an investment analyst in 1988. Previously, he was a lending officer at Chemical Bank and a corporate finance associate at Shearson Lehman.
Based in Newark, N.J., Prudential Mortgage Capital is a national full-service commercial and multifamily mortgage finance business with more than $72.6 billion in assets under management and administration as of Sept. 30, 2012.
— Matt Valley