JPMorgan Chase acquired $3.5 billion of multifamily and commercial real estate loans from Citigroup, saying that the "highly desirable" portfolio mirrors the Chase commercial term-lending group's focus on "excellent borrowers in stable markets."
The companies did not disclose the price tag on the deal, which involves 3,800 performing loans mainly for multifamily real estate properties in California, Illinois and New York. Chase's commercial term-lending business primarily focuses on loans for moderately-priced apartment buildings in stable markets, with 80% of the group's $36 billion portfolio in multifamily loans.
"This highly desirable loan portfolio adds strong earning assets in markets we currently serve and valuable relationships that will provide new origination opportunities," said Al Brooks, head of Chase commercial term lending.
The portfolio had been part of Citi Holdings, the Citi division containing distressed or non-core assets the company has decided to sell or wind down. The sale closes immediately and will be reflected in JPMorgan Chase's third-quarter results.
