NEW YORK CITY-JPMorgan Chase said Tuesday that it has purchased a $3.5-billion portfolio of performing multifamily and commercial real estate loans from Citibank. Terms of the deal, which focuses on properties in California, Illinois and New York, were not disclosed.
About 3,800 loans are included in the portfolio, the two companies said in a joint statement. For Chase, the acquisition is a “strategic addition” to its Commercial Term Lending business, which specializes in loans for moderately priced apartment buildings in stable markets.
For Citi, the deal means clearing $3.5 billion worth of non-core assets off its books. The non-core business, known as Citi Holdings, currently represents less than 25% of Citi’s balance sheet. The banking giant says it will continue to pursue “divestiture opportunities.”
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