Get the scoop on finance - sign up for mobile alerts
Financeflux
| On
September 2, 2024

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

By Alex Richardson

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 with retail space in LA’s Little Tokyo district in a deal with a “mega landlord,” The Real Deal reports.

ADVERTISEMENT

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 amid higher-for-longer interest rates.

Recent office building sales are especially eye-popping as low occupancy rates continue.

Last month, one of the tallest buildings in St. Louis, Missouri sold for only $3.6 million after selling for $205 million in 2006.

ADVERTISEMENT

And Allstate just sold a business building in Chicago for about $11 million after purchasing it for $29.7 million in 2022.

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.

ADVERTISEMENT
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
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney