Citibank has sold a $3.5 billion commercial real estate loan portfolio to JPMorgan Chase. The deal includes 3,800 primarily multifamily loans taken out against properties in California, Illinois and New York. The loans will be added to the Chase Commercial Banking $36 billion portfolio, of which 80 percent are multifamily loans.
“We are excited about the opportunity to provide additional credit for multifamily properties in our core markets and broaden our relationship with these new clients,” Chase Commercial Banking CEO Todd Maclin said in a statement.
Terms of the deal were not disclosed, but it only included performing loans on strong-credit properties. The assets were all owned by Citi Holdings, and the move represents Citibank's strategy of reducing Citi Holdings' portfolio, which is now less than 25 percent of Citibank's balance sheet.