JPMorgan Chase will purchase a $3.5 billion portfolio of commercial and multifamily real estate loans from Citibank, which includes over 3,800 loans for properties in California, New York and Illinois. Chase purchased a portfolio that includes only loans on properties with a strong credit performance.
The portfolio will enhance the business of Chase’s Commercial Term Lending division, the team that provides loans for apartment and multifamily dwellings in stable economic times. According to the statement released by Chase, over 80 percent of the division’s portfolio is comprised of 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 Commercial Term Lending in a statement. “The portfolio mirrors Chase Commercial Term Lending’s focus on excellent borrowers in stable markets.”
The portfolio acquisition will enhance and expand Chase’s existing portfolio of multifamily and commercial loans.
“We are excited about the opportunity to provide additional credit for multifamily properties in our core markets and broaden our relationship with these new clients,” said Todd Maclin, CEO of Chase Commercial Banking in a statement. “We know how important rental apartments are to the health of a community.”
Though the terms of the purchase were not disclosed to the public, it was revealed that the transaction will close right away and be a part of Chase’s 3rd quarter financial statements. According to the statement, the sale will not have an impact on the net income of the seller, Citibank.
Source: JPMorgan Chase