The Real Deal Miami

JPMorgan selling $2.9B in commercial mortgage bonds

May 17, 2011 12:44PM

JPMorgan Chase is bringing $2.9 billion worth of bonds backed by commercial mortgages to the market as investor demand picks up for offices and shopping center debt, Bloomberg News reported. The pool, which may be sold as soon as next week, includes 42 loans on 84 properties, 41.1 percent of which are retail and 35.6 percent are office buildings. The largest loan in the deal is a $199.8 million mortgage on Jersey City’s Newport Centre, a 1.5 million-square-foot mall where Macy’s occupies 229,889 square feet. Meanwhile, Wells Fargo and Royal Bank of Scotland are also selling $1.45 billion of bonds backed by office, mall and hotel loans. The securities market has been on the upswing this year, with $8.6 billion in commercial mortgage bonds already issued, compared with $11.5 billion in all of 2010. JPMorgan has estimated that sales may hit $45 billion by the end of 2011, with $4.5 billion in the next two weeks alone. [Bloomberg]