The Real Deal Miami

JPMorgan’s $720M sale a positive sign for CMBS, experts say

June 21, 2010 01:00PM

JPMorgan Chase’s sale of $720 million worth of commercial real estate loans two weeks ago was a promising sign to those in the real estate industry that funding for commercial mortgage-backed securities had returned,
Crain’s reported. “The CMBS market is slowly starting to come back,”
said Barbara Duka, a managing director at Standard & Poor’s. “It is

certainly not what it once was, but we have to start somewhere.”
Typically, CMBS are packages of real estate loans that are diced up
and sold to investors. Their rise helped fuel the real estate boom a few years back,

but a series of disastrous deals ultimately triggered the bust.
Experts attribute the tentative comeback of CMBS to investors who are ready to

plow into real estate again, believing that it is safe now that
property values have plummeted. In addition, real estate developers
are desperate for cash to buy new properties and refinance existing
ones. [Crain’s]