Wall Street Crowds Into Trader Joe’s for Bond Deals: Mortgages
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Wall Street is scouring the U.S. for grocery stores as bankers are pushed out of lending to trophy office properties.
Morgan Stanley is selling about $1 billion of commercial mortgage-backed securities with five of the 10 largest loans tied to retail buildings, including specialty supermarket Trader Joe’s in Cambridge, Massachusetts and a Kings Food Market in Millburn, New Jersey. About half of the largest loans bundled into CMBS in the past six months are linked to retail, up from 27 percent in December 2007 and as low as 12 percent in June of that year, according to data compiled by JPMorgan Chase & Co.