Real Estate Journal Online

Although many lenders are still shedding commercial real estate assets, JP Morgan Chase is back in the commercial lending business[1]. And that business is booming as the lack of competition enables the bank along with fellow companies like Wells Fargo and PNC Financial Services Group to offer terms that appeal to borrowers and keep the lenders on secure financial footing. “There hasn’t been a lot of new development activity,” explains Todd Maclin, JP Morgan Chase & Company’s commercial banking head, explaining that this has led to improvement in lending terms[2].

JP Morgan is not just making new loans, either. Last year, the lender bought $3.5 billion worth of loans from Citibank. Maclin was notorious while other lenders were making “crazy” commercial loans for refusing for years to engage in the practice. As a result, JP Morgan’s commercial banking is on solid footing, and chief executive Jamie Dimon credits Maclin with the lender’s “outstanding job navigating the treacherous commercial real estate market.” The lender is particular interested in multifamily apartment projects in “expensive cities” and is enforcing “stricter loan terms” with no “Mickey House” terms in the fine print.

While Maclin says he’s more than willing to stop lending at the first signs of trouble, for now he’s ready to make some deals. Are you following his lead and getting involved in commercial real estate again?

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[1] http://www.crainsnewyork.com/article/20110329/REAL_ESTATE/110329866

[2] http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201103281058dowjonesdjonline000194&title=jpmorgans-commercial-real-estate-contarian-now-wants-to-lend