JPMorgan Chase has purchased a $3.5 billion portfolio of multifamily and commercial real estate loans from Citibank. Terms of the transaction were not disclosed.
The portfolio, which includes approximately 3,800 loans that are primarily multifamily loans for properties in California, New York and Illinois, is a strategic addition to Chase's Commercial Term Lending business, the bank says. The business, which is part of Chase Commercial Banking, specializes in providing loans for moderately priced apartment buildings in stable markets. About 80% of Commercial Term Lending's existing $36 billion portfolio is 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," says Al Brooks, head of Commercial Term Lending. "The portfolio mirrors Chase Commercial Term Lending's focus on excellent borrowers in stable markets."
The purchased loan portfolio contains only performing loans on properties that have shown strong credit performance.
The transaction closes immediately, and will be reflected in JPMorgan Chase's third-quarter financial statements. The transaction is not expected to have a material impact on Citi's net income.
SOURCE: Chase Commercial Banking