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J.P. Morgan Makes a Splash in the Non-Traded REIT Space with $5 Billion Offering

CEO Khai Intela
J.P. Morgan Real Estate Income Trust Inc., an externally managed and sponsored non-traded real estate investment trust (REIT) by J.P. Morgan Investment Management Inc., has recently gained approval from the Securities and Exchange Commission, ready...

J.P. Morgan Enters Non-Traded REIT Space with $5 Billion Offering

J.P. Morgan Real Estate Income Trust Inc., an externally managed and sponsored non-traded real estate investment trust (REIT) by J.P. Morgan Investment Management Inc., has recently gained approval from the Securities and Exchange Commission, ready to make waves in the non-traded REIT market. With their unparalleled expertise and solid reputation, J.P. Morgan is set to offer investors an enticing opportunity to diversify their portfolios.

Building on Decades of Experience

J.P. Morgan Investment Management boasts over 50 years of experience in the real estate investment arena, working with some of the world's most esteemed institutions. Now, they aim to bring their expertise to the non-listed REIT industry. By leveraging their established platform, J.P. Morgan Real Estate Income Trust aims to acquire stable, income-generating properties, providing investors with a reliable stream of cash flow.

A Diverse Investment Approach

While the primary focus of J.P. Morgan Real Estate Income Trust is on stabilized, income-generating real properties, the REIT also considers refurbishment, re-development, and development properties as secondary investment options. In addition, the trust may invest in real estate debt and real estate-related securities. With a commitment to maximizing returns, the REIT seeks to allocate at least 80 percent of its gross asset value to properties and real estate debt, and up to 20 percent to real estate-related securities.

A Fair and Transparent Offering

J.P. Morgan Real Estate Income Trust offers shares at a price equal to the Net Asset Value (NAV) per share of each class of common stock, which is updated monthly. Initially priced at $10.00 per share, plus applicable upfront selling commissions and dealer manager fees, the REIT ensures fair pricing for investors.

To cater to different investor profiles, J.P. Morgan Real Estate Income Trust offers various classes of shares:

Class T Shares:

These shares are available through brokerage and transactional-based accounts. Priced at $10.35, they include a maximum selling commission of 3 percent and a 0.5 percent dealer manager fee. Class T shares also have a 0.65 percent annual advisor stockholder servicing fee and a 0.20 percent annual dealer stockholder servicing fee.

Class S Shares:

Also accessible through brokerage and transactional-based accounts, Class S shares are priced at $10.35. They come with upfront selling commissions of up to 3.5 percent and no dealer manager fees. Investors in Class S shares pay a 0.85 percent annual stockholder servicing fee.

Class D Shares:

Investors seeking fee-based programs can opt for Class D shares, priced at $10.15. With upfront selling commissions of up to 1.5 percent and no dealer manager fees, Class D shares carry a 0.25 percent annual stockholder servicing fee.

Class I Shares:

Designed for fee-based programs and institutional investors, Class I shares have no upfront selling commissions, dealer manager fees, or stockholder servicing fees.

To participate, the minimum investment required is $2,500 for Class T, Class S, and Class D shares. However, Class I shares have a minimum investment threshold of $1 million.

Partnering for Success

As part of the REIT's initial capitalization, J.P. Morgan Investment Management has made significant commitments. They have agreed to purchase $25 million in Class E common stock and/or Class E units in the operating partnership through a separate private offering. Additionally, they have the option to acquire up to an additional $75 million in Class E shares/units. With over $150 million in commitments and more than $25 million already invested, J.P. Morgan is showing their dedication to the success of this venture.

A Financial Powerhouse

JPMorgan Chase & Co. (NYSE: JPM), with $3.7 trillion in assets as of December 31, 2021, is a leading financial services firm. Within its family of businesses, J.P. Morgan Asset Management offers global investment management across various asset classes, including equities, fixed income, real estate, hedge funds, private equity, and liquidity. The firm's solid foundation and long-standing track record ensure investors can trust in the stability and reliability of J.P. Morgan Real Estate Income Trust.

Embrace the opportunity to diversify your portfolio with J.P. Morgan Real Estate Income Trust. With their wealth of experience and strong reputation, they are poised to make a significant impact in the non-traded REIT market. Join the ranks of savvy investors who are capitalizing on this exciting new offering.

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