JPMorgan Chase has purchased a $3.5bn portfolio of multifamily and commercial real estate loans from Citibank. Terms were not disclosed.

The portfolio, which includes approximately 3,800 loans that are primarily multifamily real estate loans for properties located in California, New York and Illinois, is a strategic addition to Chase’s commercial term lending business. The business, which is part of Chase Commercial Banking, specializes in providing loans for moderately priced apartment buildings in stable markets.

The purchased loan portfolio contains only performing loans on properties that have shown strong credit performance, claimed JPMorgan Chase.

Al Brooks, head of commercial term lending business of JPMorgan Chase, said: “This highly desirable loan portfolio adds strong earning assets in markets we currently serve and valuable relationships that will provide new origination opportunities. The portfolio mirrors Chase commercial term lending’s focus on excellent borrowers in stable markets.”