Prudential Real Estate Investors (PREI) has entered into a joint venture with L&L Holding Co. to acquire office properties in the New York City metropolitan area on behalf of institutional investors.

PREI, an affiliate of Prudential Financial based in Parsippany, N.J., is looking to invest up to $500 million in these investments, which will primarily be focused in Manhattan, through this joint venture. L&L is a private real estate company that invests in office properties, primarily in Manhattan.

“The current markets have provided our investors with a unique opportunity to take advantage of softening prices,” says Leonard Kaplan, principal for PREI’s global merchant banking team. “We’re thrilled to team up with L&L, which has become one of New York’s leading investors and has a great track record of adding value to properties after they’re acquired.”

PREI sees the New York City metropolitan office market as a good bet since its office market remains strong in the face of a national economic slowdown. So far, employment losses in the financial services sector have been offset by gains in other areas, including government, education, information and health services.

“The opportunity to partner with PREI enhances our ability to grow in the New York market as we work together to acquire properties, then build value through management, redevelopment or renovation,” says David Levinson, an L&L principal.

The terms of the joint venture, which was arranged by Cushman & Wakefield Sonnenblick Goldman, have not been disclosed.