J.P. Morgan Real Estate Income Trust Inc., a non-traded net asset value real estate investment trust externally managed and sponsored by J.P. Morgan Investment Management Inc., was declared effective by the Securities and Exchange Commission on July 22nd. The offering is comprised of up to $4 billion of Class T, Class S, Class D, and Class I shares of common stock and $1 billion in distribution reinvestment plan shares.
According to the prospectus, the REIT’s objective “is to bring [J.P. Morgan Investment Management’s] leading real estate investment platform with over 50 years of experience investing on behalf of some of the world’s most respected institutions to the non-listed real estate investment trust industry.”
J.P. Morgan Real Estate Income Trust will focus on purchasing stabilized, income-generating real properties, and to a lesser extent, refurbishment, re-development, and development properties. The REIT will also invest in real estate debt and real estate-related securities. Generally, the REIT seeks to invest at least 80 percent of its gross asset value in properties and real estate debt, and up to 20 percent in real estate-related securities.
Shares will be offered on a continuous basis at a price equal to the NAV per share of each class of common stock, updated monthly. Initially, shares are priced at $10.00 each, plus applicable upfront selling commissions and dealer manager fees. J.P. Morgan Institutional Investments Inc. serves as the dealer manager for the offering.
Class T shares, available through brokerage and transactional-based accounts, are initially priced at $10.35 and include a 3 percent maximum selling commission and a 0.5 percent dealer manager fee. Class T shares have an annual 0.65 percent advisor stockholder servicing fee and a 0.20 percent annual dealer stockholder servicing fee, paid monthly.
Class S shares, available through brokerage and transactional-based accounts, are priced at $10.35 and include upfront selling commissions of up to 3.5 percent and no dealer manager fees. Class S shares have a stockholder servicing fee of 0.85 percent per year.
Class D Shares, available through fee-based programs, are priced at $10.15 and include upfront selling commissions of up to 1.5 percent and no dealer manager fees. Class D shares have a 0.25 percent annual stockholder servicing fee.
Class I shares, available through fee based programs and to institutional investors, have no upfront selling commissions, dealer manager fees, or stockholder servicing fees.
The minimum investment is $2,500 for Class T, Class S, and Class D shares, and $1 million for Class I shares.
As part of its initial capitalization, J.P. Morgan Investment Management has agreed to purchase $25 million in Class E common stock and/or Class E units in the operating partnership through a separate private offering, and up to an additional $75 million in Class E shares/units. As of July 6, 2022, the fund has received more than $150 million in commitments and has sold Class E shares/units for a total purchase price of more than $25 million.
JPMorgan Chase & Co. (NYSE: JPM) is a financial services firm with $3.7 trillion in assets as of December 31, 2021. Its asset management business, J.P. Morgan Asset Management, provides global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity.