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JPMorgan Chase's recent forays in construction lending could be positioning the bank to become New York's largest construction financier.
Within the last month, JPMorgan has agreed to a total of $1.75B in construction loans for two of the most high-profile developments in Manhattan — Extell Development's Central Park Tower, and Macklowe Properties' residential conversion of One Wall Street. $900M went to Extell, and $850M went to the partnership of Macklowe Properties and Qatari nobility, The Real Deal reports.
Both ambitious projects had struggled to obtain enough financing before JPMorgan, which boasts among the deepest pockets in the country, stepped in. After a 2016 that saw it overtake Deutsche Bank as the biggest issuer of CMBS loans in the country, JPMorgan is moving aggressively into the construction market with heavily incentivized deals, according to TRD.
Multiple real estate executives guessed that with such huge transactions, JPMorgan is attempting to set the template for commercial real estate financing in the market by gaining so much market share that others will have to follow their model, much in the same way that Wells Fargo took the lead in residential lending.
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