JP Morgan Real Estate
Curious if anyone has any thoughts on this team, not very familiar with how they are structured overall. Any insight into their process in terms of if they have an analyst program or just hire one-off for their investments team, pay, culture, etc would be greatly appreciated. Currently working at a large GP on the acquisitions side but looking to pivot specifically to NYC
JP Morgan's Real Estate team is a well-regarded player in the real estate investment and asset management space, operating under the umbrella of J.P. Morgan Asset Management. Here's a breakdown of what you should know based on insights from WSO threads and other top-rated discussions:
Structure and Analyst Program
Pay
Culture
Process for Lateral Moves
Tips for Pivoting to NYC
If you're serious about making the move, consider reaching out to recruiters who specialize in real estate roles or exploring WSO's networking resources to connect with current or former team members.
What division? Commercial, Asset Management, or CIB? Experiences vary depending on which part of the firm you are in
JPM has like 5-6 different real estate teams. Be more specific
What are the 5-6?
Affordable Housing Lending, CMBS, Real Estate Private Equity, Real Estate Lending, Real Estate Banking
Any idea why JP Morgan is not able to beat Wells Fargo when it comes to CRE Finance- from balance sheet lending to Agency finance? What allows Wells Fargo to dominate and what is preventing JP Morgan from increasing market share? When it comes to Agency financing for instance, Wells Fargo is the number 1 Agency bank lender and banks like Key Bank, PNC, Capital One and Truist do more business than JP Morgan.
JP just got a Freddie Mac license so they should in theory grow in the near future. Also, I could be wrong here, but JPMC seems to do a ton of repeat business with the same sponsors, whereas Wells will chase all of the widely marketed deals. I work at one of the banks you mentioned.
They had the Fannie license for a while, they just have not been one of the top Agency bank lenders. Tons of repeat business with the sponsors whom you have a relationship with is also what Wells does and if you are a top Bank Agency lender, that is the way to go given you have a balance sheet where you already have exposure to clients who need your balance sheet. The non banks are the ones that chase all sorts of deals (often via brokers) and do tons of one off deals where you dont have a strong relationship with clients.
Good question. Following for updates
JP Morgan is actually #2 in commercial real estate lending in terms of volume, but the majority of their business is small, middle market/lower middle market multi family lending, where it is just an absolute well oiled machine. Think 4-12 unit deals where the borrower cannot negotiate on any loan docs - just one template for every deal. So you don’t see them show up a lot because these deals aren’t in the news or on anyone’s radar. With that being said their CMBS is strong and other lending businesses seem to be growing.
#2 or one of the top yes (especially given their balance sheet which allows them to buy into large syndications even when they are not the lead originator), but there should absolutely be no reason Wells Fargo can do more business especially given the fact that Wells literally had an asset cap for several years. JP does well in the small loan/small mutlifamily space but for them to not have a top bank Agency business (Wells is clear #1 there and then followed by Capital One, Key Bank, Truist, PNC, etc) makes no sense. I also suspect some of their bankers are steering their clients towards their balance sheet products when an Agency loan could work, so their clients are not being shown all the possible options. The Agency business often gets you larger loans, fee income and the bonus is your clientele can include institutional clients which then also benefits your other lines of CRE businesses.
Following for updates as well. Isn't there a push for JPMorgan to increase its GSE production? Would the difference between Wells / Key / CapOne boil down to JpMorgan ramping up and not being known to offer agency products?
profitability. agency commercial lending commands lower spread due to the lower risk nature and lower fee. Lots of operations overhead as well. The same balance sheet share can generate more revenue in NA financing deals.
Agreed that balance sheet financing is often the lifeblood of a good CRE platform but that is exactly my point. Despite years of having an asset cap and some years where Wells' balance sheet was essentially dormant, the fact that their platform today has the same if not higher production volume speaks to the strength of Wells' platform of course but it also speaks volumes about how JP Morgan is not as strong as it could be and that's on them. They are playing not to lose and not playing to win. IMO, Wells plays to win and is laser focused on being the #1 CRE lender.
Coming to the Agency business, it goes hand in hand with the balance sheet business given as much as you want to originate new balance sheet loans, you also want to get repaid and earn fee income at the same time, that's where the Agency business comes in and takes out your construction and bridge loans. When the Agency team at Wells is taking out JP Morgan's construction and bridge loans, that just shows incompetence of JP Morgan's CRE platform. Because it starts with losing Agency business to Wells and then that develops into losing construction loan and bridge loan business for the same clients.
This was a while ago, so take it with a grain of salt. But every time we asked JP Morgan to quote financing they said - "You don't do treasury with us, so here's our stupidly low LTV and stupidly high rate. Give us your treasury business."
If you think wells is a better cre lender or bank to be at than JPM because they have a better agency business, you should be banned from wso
better bank to be at? That is subjective, if you are at JPM, good for you, nothing wrong with working there. but is it not a fact that Wells has a better Agency business than JPM? Is it not a fact that despite the asset cap, Wells has been #1 or #2 CRE lender in general per the MBA? Those are facts, not opinions. What would be an opinion is that Wells, JP, BoA, etc could all offer a similar experience for someone working there. Your team, manager, etc is far more important. At the end of the day, work would be a lot of rinse and repeat shit every day. I would agree with this opinion. But lets not equate facts with opinions.
Wells is literally a better CRE lender than JPM in every single division/asset type except for shitty middle market multi family product.
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