J.P. Morgan REIT Secures Loans for Up to $1B and Completes $300M in Acquisitions

J.P. Morgan Real Estate Income Trust Inc., a non-listed perpetual life real estate investment trust, announced a series of recent activities: an amendment to its subscription agreement, the establishment of a substantial new credit facility, and several key property acquisitions across industrial and multifamily sectors.

The REIT, along with its operating partnership and adviser J.P. Morgan Investment Management Inc., entered into a second amendment to its subscription agreement. This amendment revises the repurchase terms for shares and units held by the adviser. Under the new terms, following the end of each month after July 22, 2025, or once the company’s net asset value reaches $1.5 billion – whichever comes first – the company and/or the operating partnership will automatically repurchase or redeem securities from the adviser. This repurchase will be equal to 80% of the net monthly public and private offering proceeds, up to 80% of any remaining availability under the company’s share repurchase plan, after fulfilling third-party stockholder requests.

Additionally, the REIT secured a new credit agreement with Truist Bank and other lenders. This agreement provides for unsecured revolving credit commitments totaling $325 million, with an accordion feature allowing for an additional aggregate amount of up to $675 million. This brings the potential total to $1 billion.

The proceeds from this credit facility are earmarked for general business purposes, including debt refinancing, property acquisitions, new construction, renovations, capital expenditures, and dividends. Revolving loans under the agreement will bear interest at a rate based on term secured overnight financing rate plus an applicable margin, 1.3% to 1.8%, or a base rate plus an applicable margin, 0.3% to 0.8%.

Finally, the REIT has been active in expanding its real estate holdings, with recent acquisitions across industrial and multifamily properties.

Industrial Acquisitions

• The company acquired a 16-property industrial outdoor storage portfolio for $95.2 million. This was part of a sale-leaseback agreement with a major North American transportation provider and was funded by the sale of common stock shares.
• The company acquired a 76,028-square-foot warehouse in Hempstead, N.Y., for $18.6 million. The acquisition included the assumption of a $6.6 million mortgage loan with a 4.35% interest rate, interest-only until July 2028.

Multifamily Acquisitions

• The REIT acquired Emblem Oswego, a Class-A, 312-unit garden-style multifamily property in Oswego, Ill., for $84 million. This acquisition was funded by the sale of common stock shares.
• A stabilized 256-unit workforce housing community, the company acquired Reflections at Red Mountain in Mesa, Ariz., for $52 million. This purchase was also funded through the sale of common stock shares.

In late June, the REIT also closed on a $55.7 million mortgage loan to finance the acquisition of Cortland at Armour Yards, a 372-unit apartment community in Atlanta. The mortgage loan has an initial term of two years with three, one-year extension options.

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