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By: Lingling Wei in the Wall Street Journal
Even as woes mount in the commercial-real-estate market, a once-vital source of funding for commercial-property owners is showing signs of life.
Banks including J.P. Morgan Chase & Co., Goldman Sachs Group Inc. and Citigroup Inc. are expected to launch in the coming weeks two
offerings of commercial-mortgage-backed securities, or CMBS, totaling
$1.4 billion, according to people familiar with the matter.
Representatives at the banks declined to comment.
J.P. Morgan is leading a $650 million offering backed by properties owned by real-estate investment trust Vornado Realty Trust, the people
with knowledge of the situation said. Vornado, of Paramus, N.J., will
use the proceeds to repay existing debt, these people said. A
spokeswoman for the company declined to comment.