JPMREIT Closes on Loan for Multifamily Property, Reports a 3.5% Total Monthly NAV Increase

J.P. Morgan Real Estate Income Trust Inc., or JPMREIT – a non-listed perpetual life real estate investment trust – closed a $62.4 million mortgage loan to an affiliate of New York City-based private real estate firm Raith Capital Partners to finance the acquisition of Satori West Ashley, a 297-unit multifamily property located in Charleston, S.C. This represents JPMREIT’s second real estate debt investment. The transaction grows JPMREIT’s portfolio allocation to income-focused real estate debt to approximately 18%.

Built in 2023, Satori West Ashley is a Class A, midrise multifamily property on John’s Island within the West Ashley submarket of Charleston. The property features high-end unit finishes and an extensive amenity package, including a clubhouse with a saltwater pool, grill areas, a fitness center, and a movie theater. According to JPMREIT, the community is adjacent to a Publix supermarket and major thoroughfares, providing convenient access to employment centers in North Charleston and Charleston’s central business district.

JPMREIT’s ability to invest in real estate debt enables it to pursue attractive opportunities that should generate strong relative risk-adjusted returns in varying market environments. This transaction delivers an attractive yield supported by a high-quality asset in a top market.

“We continue to have high conviction in the multifamily sector, especially in markets with expected population growth and a waning construction pipeline,” said Doug Schwartz, co-president of JPMREIT. “This transaction demonstrates our ability to invest across the capital structure to deliver attractive returns to our stockholders,” added Schwartz.

The mortgage loan for Satori West has an initial two-year term and includes up to three one-year extension options.

In May 2024, JPMREIT acquired a 95% interest in a grocery-anchored shopping center in Queens, N.Y., which brought the total asset value of the REIT’s portfolio to $400 million. The investment was the first last-mile retail investment for JPMREIT, located in a dense residential neighborhood of roughly 1 million people residing in a 3-mile radius.

In other JPMREIT activity, the company disclosed the July 31, 2024, net asset value per share for each class of its common stock, as follows:

Class D shares had a NAV per share of $10.34, compared to $10.30 per share the previous month, an approximate 0.39% increase.

Class I shares had a NAV per share of $10.39 compared to $10.34 per share the previous month, an approximate 0.48% increase.

Class S shares had a NAV per share of $10.76, compared to $10.70 per share the previous month, an approximate 0.56% increase.

Class T shares had a NAV per share of $10.88 compared to $10.80 per share the previous month, an approximate 0.74% increase.

The total net asset value for the REIT was approximately $190.44 million, a 3.5% month-over-month increase on June’s approximately $183.95 million. The number of outstanding shares as of July 31 was approximately 17.9 million.

Launched in July 2022, JPMREIT is currently offering on a continuous basis up to $5 billion shares of common stock on a continuous basis, consisting of up to $4 billion in shares in its primary offering and up to $1 billion in shares pursuant to its distribution reinvestment plan. As of Aug. 14, the company had issued and sold approximately 877,000 Class D, approximately 6.5 million Class I, and approximately 53,800 Class S shares in the primary offering for total proceeds of approximately $77.1 million. It had issued approximately 22,300 Class D, approximately 90,260 Class I, and approximately 1,800 Class S shares for a total value of approximately $1.2 million pursuant to its distribution reinvestment plan.

J.P. Morgan Real Estate Income Trust leverages J.P. Morgan Asset Management’s more than 60 years of real estate investment experience and invests in stabilized, income-producing assets and development. J.P. Morgan Asset Management, with assets under management of $3.3 trillion as of June 30, 2024, is a global leader in investment management supporting clients such as institutions, retail investors, and high-net-worth individuals in every major market throughout the world.

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