The asset-management arm of JPMorgan Chase is looking to raise between $2 billions and $3 billion from institutional investors to take advantage of “dislocations” in the real estate market, according to Bloomberg. The vehicle will invest in bonds and loans connected to commercial real estate, with targeted net returns of 10 to 15 percent.
As the public and private real estate credit markets fracture, other companies are also sensing opportunity.
Fortress Investment Group is also looking to raise some $1 billion for its second lending fund.
The vehicle, Fortress Lending Fund II LP, is reportedly aiming to originate and purchase senior secured loans over a variety of sectors, with targeted returns of 12 to 15 percent per year, before fees.