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A Sale is a Sale...
In a report published by the Wall Street Journal, JP Morgan Chase & Co. is looking to sell some 23 office properites, potentially one of the largest commercial real estate sales of the year- maybe more than $1 billion worth.
Generally, with large sales such as this- it's common for the seller to offer incentives and/or sales support to help digest the sale... Make it worth their while, if you know what I mean? What's the use in buying a building or space when you don't have the big tennants to help pay the bills?
Sale-leaseback transactions, preferred financing, things like this- which help the new owner justify and finance the purchase.
JPM has not explicitly offered such deals, or at least not yet. Not quite confidence inspiring if you ask me- not for the real estate market or the mortgage/lending market.
I can understand a bank wanting to get out of the real estate market. But out of the lending market? Well... You tell me.
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I saw that too. Makes me wonder what they need the cash for...
...Rut-roh!
more ammos for the machines to trade with on this low volume run-up
Take the proceeds, bury it in a wrong column and bump Q3.
this isnt about cash as much as it is about them wanting out of the cre ownership biz. i dont blame them. better to rent than to own in office-space these days!!!
Redrum...redrum...redrum...redrum..
Notice how the choruses of 'the worst is over' have grown louder and ever more frequent lately. This is a tell if there ever was one.
they need it to continue financing the manipulation of the gold and silver markets. they are holding massive shorts there. something like 30% of the world's annual silver production.
fighting the incoming inflation tide doesn't bode well for these positions.
Not sure of the % of annual production - but yes, 30% of futures open interest .
http://www.cftc.gov/dea/bank/deaaug09f.htm
hope they're getting rid of all those store fronts in new york city
takes a lot of money to keep those oil supertankers afloat at sea.
was thinking the exact same thing
yeah, you don't want to be holding their hand when the inflation genie is so big that even the dunderheads on CNBC might have to acknowledge that prices are rising.
what a joke.....you know, this year -- IN CORN COUNTRY -- corn is 60 cents an ear.
any less, and my friend the farmer says he won't make a dime on the crop.....
but there is NO inflation. NONE.
I bought corn for $0.25/ear a week ago - at a retail establishment (i.e., not wholesale). It's definitely cheap.
along with Bank of America, they want to get rid of all that street level glass.
I don't get the JPM motivation to sell, unless they expect the CRE to drop much lower and don't expect to grow in the next 10 years.
Unless it's a prelude to HUGE(!!!) payroll cuts. Still, the practical side of such a step for such a large company in the middle of CRE tsunami escapes me.
I don't think it has much to do with their internal HR expectations - the buildings are investments rented out to all kinds of various tenants.
correction: glass windows
About 4 Ex-WAMU branches for sale down the street from me
you must live near me UWS
Who would buy anything that JPM or GS is unloading? These people are supposed to be the smartest people in finance. If they are selling that should tell you something.
good point madmax...that's one thing that baffles me with GS's trading results: they crush it year after year, & yet there has to be folks on the other side of their trades getting blown up left & right. wouldn't it occur to them at some point that taking the other side of GS's short CMBS BBB- index trades is a bad idea?
I forgot the name of a hedge fund that was really short subprime
2006. He was saying that they discovered that market and they had clients that wanted them to short subprime crap
As in they wanted to be on the other side of this trade
Since gs has a lot of clients, it's not unreasonable to have them
Enter in such a atransaction, so nothing conspiratorial about it.
There are just fortunate dumb people who managed to come by some cash to manage
Here is what they need the cash for:
http://www.nakedcapitalism.com/2009/08/jp-morgan-chase-caught-speculating-with.html
"But JP Morgan managers in London discovered last month that client and bank money used for trading futures and options - a way of speculating on movements in currencies, share prices and commodities - had apparently been put into a single pool.
They raised the alarm and notified the FSA. The scale of case is unprecedented, say City insiders. The FSA has penalised small firms in the past for mixing funds owned by clients and the banks themselves.
But this is thought to be the first case involving such a large household name.
JP Morgan Chase faces the threat of an unlimited fine if the watchdog decides enforcement action is necessary."
These big banks have virtual immunity right now. Look at BAC's recent fine of $33 million. Lloyd Blankfien could have paid that entire fine with just a portion of his 2007 pay and had over $30 million left to spare.
2007 bonus:
http://www.marketwatch.com/story/goldman-sachs-ceo-gets-679-million-bonus
2006 Bonus:
http://www.msnbc.msn.com/id/16299324/
Sucks when you use the business cycle to snatch up things for pennies on the dollar and then the world won't let the business cycle stop so you can dump your ill gotten gains. Totally not fair. :D
maybe they are thinking of all the soon to be dead regionals, community banks that are going to be given to them for free by the FDIC and are unloading space.
the TBTF banks will end up controlling 80% of market over the whole spectrum and won't need many outlets.
A free advice:
Don't buy what Goldman Sachs is selling. For that reason, Don't buy what JP Morgan is selling.
Sell what Goldman Sachs is selling and buy what goldman sachs is buying. Don't do what goldman says, Do what goldman does.
If we did what GS does we would go to jail!
Travis,
Didn't TD bring you on to report on Rolex watches and things of fantastic material nature?
You're a bit out of your league with this story, no? And way off base I can assure you.
Jamie, is that you? Out of all the comments posted, you're the one who is off topic and perhaps out of your league. News is news. Now get back to your job of rape and run.