JPMorgan Chase Takes $29,900,000 Loss On LA Apartment Complex in Deal With ‘Mega Landlord’: Report

JPMorgan Chase has reportedly unloaded a major real estate investment in Los Angeles, taking an eight-figure loss.

JPM’s Investment Management division has sold a large apartment complex in LA’s Little Tokyo district in a deal with a “mega landlord,” The Real Deal reports.

Records show the bank bought the complex on 232 East 2nd Street for about $116 million in February of 2020, but recently sold it for $86.1 million – taking a $29.9 million hit.

The deal is the latest multi-million dollar loss in the troubled commercial real estate market as high interest rates and low occupancy rates continue to hammer the industry.

Last month, Allstate sold a business building in Chicago for just over $11 million after purchasing it for $29.7 million two and a half years ago.

And in the same month, a large real estate firm sold a pair of office buildings in Boston for $4.1 million after paying $16 million seven years ago.

Meanwhile, US banks at large are quietly selling their exposure to commercial real estate loans in a push to cut their losses, according to a recent report from the New York Times.

The report cites recent sales of commercial real estate loans in New York, San Francisco, and Boston by Goldman Sachs and Citigroup, and Capital One.

In this instance, JPMorgan bought and has now sold the entire complex to FPA Multifamily, a firm that owns 770 buildings across the US and has been aggressively scooping up real estate all across the country during the market downturn.

According to its website, FPA has transacted approximately $24 billion worth of real estate deals in the US.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

Generated Image: Midjourney