J.P. Morgan REIT Acquires Two Sunbelt Assets for Nearly $67 Million
J.P. Morgan Real Estate Income Trust Inc., or JPMREIT – a non-listed perpetual life real estate investment trust – has acquired two multifamily assets: The Preserve at Pine Valley in Wilmington, N.C., and Bass Lofts in Atlanta. The company said the acquisitions underscore its commitment to expanding its portfolio of high-quality, attainable housing assets in high-growth markets.
The Preserve at Pine Valley is a 219-unit, Class B housing community acquired in a 90/10 joint venture partnership with Ginkgo Residential, a Charlotte-based owner and operator focused on workforce housing. Situated in central Wilmington, the property offers residents convenient access to downtown Wilmington, Wrightsville Beach, and the Novant Regional Medical Center. The company says the property is “ideally positioned” to benefit from Wilmington’s economic and demographic growth, which, to date, has resulted in a 70% cumulative increase in population since 2000. According to JPMREIT, the total purchase price was $32.1 million, exclusive of closing costs.
Bass Lofts is a 133-unit, adaptive reuse, Class A multifamily property located in the Little Five Points neighborhood in Atlanta. The property is located near downtown Atlanta, Midtown and Buckhead, as well as major highways. Originally constructed in 1923 as a school, Bass Lofts is currently 96% leased. The total purchase price was $34.8 million, exclusive of closing costs.
“These acquisitions underscore our confidence in the residential sector and our belief in the continued growth and resilience of the housing market,” said Chad Tredway, chief executive officer and chairperson. “As we navigate an environment where homeownership remains significantly more costly than renting, we see a sustained demand for rental properties.”
The residential sector is one of J.P. Morgan Asset Management’s high-conviction investing themes, which they explain is driven by the resilience of and demand for housing. The 2021 pricing bubble motivated developers to introduce new supply, which softened rents despite growing wages and strong apartment absorption. According to the company, Wilmington and Atlanta are examples of markets where new supply has peaked, and rents are firming. It said the JPMREIT acquisitions will benefit from a recovery in rental rates across their submarkets.
JPMREIT invests in stabilized, income-producing assets and development. The REIT is externally advised and sponsored by J.P. Morgan Investment Management Inc.
These latest acquisitions mark JPMREIT’s fifth and sixth investments in the residential sector, expanding its total portfolio to 12 investments.
“The Sunbelt region is experiencing declining supply amidst continued population and wage growth, making it a focal point for our investment strategy,” said Doug Schwartz, co-president of JPMREIT. “At JPMREIT, we are committed to leveraging these trends by tactically investing in assets where we can create value and in locations where economic and population growth are creating opportunities.”
Last fall, the REIT acquired a two-site, three-building infill logistics and storage portfolio totaling 154,490 square feet located in Tampa and Pinellas Park, Fla. The properties were fully leased to PODS, a moving and storage company founded and headquartered in the Tampa area, and the total purchase price was $25.8 million, exclusive of closing costs. Prior to, in August 2024, JPMREIT 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 a multifamily property in Charleston, S.C. It represented JPMREIT’s second real estate debt investment.
J.P. Morgan Asset Management, with assets under management of $3.6 trillion as of Dec. 31, 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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