MJP –
Several additional sources show that JPMorgan currently takes an 8-figure loss after selling real estate to a “mega landlord.”
In a claimed eight-figure loss, JPMorgan Chase sold a sizable piece of real estate in the Los Angeles area.
A “mega landlord” was reportedly involved in the sale of a sprawling Little Tokyo apartment complex with retail space by the bank’s Investment Management division, as reported by The Real Deal.
The 232 East 2nd Street facility, which was bought for about $116 million in February 2020, lost almost $29.9 million when sold for $86.1 million.
The commercial real estate market is still struggling with increasing mortgage rates, and this sale just serves to underscore that.
Low occupancy rates in recent office building transactions highlight the very dire market scenario.
Case in point: a renowned St. Louis building that had a price tag of $205 million in 2006 sold for a pitiful $3.6 million last month.
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Also, in 2022, Allstate paid $29.7 million for a Chicago skyscraper, but they only made around $11 million when they sold it.
Goldman Sachs, Citigroup, and Capital One are reportedly selling loans in big areas like Boston, New York, and San Francisco to decrease their exposure to commercial real estate loans, which is a growing trend among US banks.
The entire complex was sold by JPMorgan to FPA Multifamily, a company that has been buying up real estate during the recession and owns about 770 buildings across the country.
According to reports, FPA has reportedly invested almost $24 billion in US real estate.
Juniper Calloway is a dedicated journalist with 3 years of experience in covering hard-hitting stories. Known for her commitment to delivering timely and accurate updates, she currently works with MikeandJon Podcast, where she focuses on reporting critical topics such as crime, local news, and national developments across the United States. Her ability to break down complex issues and keep audiences informed has established her as a trusted voice in journalism.
