Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Defined Contribution East
    • 2023 ESG Investing
Breadcrumb
  1. Home
  2. Print
November 10, 1997 12:00 AM

J.P. MORGAN LEADS REAL ESTATE PACK

Terry Williams
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    NEW YORK - J.P. Morgan Investment Management Inc. is claiming the top spot among pension real estate money managers with its intent to buy O'Connor Realty Advisors Inc. for an undisclosed sum.

    By its calculation, J.P. Morgan will have more than $14.5 billion of tax-exempt assets under management when the purchase of O'Connor is complete, placing it atop Pensions & Investments' ranking of the largest pension fund real estate money managers, as of June 30.

    That means it would surpass the $14.3 billion that ERE Yarmouth had under management. But at the end of the third quarter, ERE-Yarmouth claimed total tax-exempt assets of $14.6 billion, said a spokesman.

    O'Connor Realty Advisors is a partnership, and the partners will receive a share of the proceeds from the sale, according to partner Julie Brenton. Jeremiah W. O'Connor Jr. is the chairman of the holding company and biggest shareholder in O'Connor Realty Advisors.

    A majority of the 32 O'Connor professionals will go to work for J.P. Morgan, Ms. Brenton said.

    Terrance Ahern, a partner with Cleveland-based real estate consultant The Townsend Group, said Mr. O'Connor's decision to sell the real estate money manager is consistent with a developing philosophy that core real estate investing will be done in the public markets and high-yield real estate investing will be executed privately.

    "You see managers moving to a balanced investment strategy . . .," said Mr. Ahern. "The alternative is to become an allocator of capital and identify opportunities and place money with operators.

    "I suggest this is where he (Mr. O'Connor) has decided his fit is going to be," said Mr. Ahern. "This is consistent with that school of thought."

    The sale of O'Connor Realty Advisors comes shortly after the failed attempt by Mr. O'Connor to restructure the Retail Property Trust, a $1.1 billion private real estate investment trust it managed for pension funds.

    Simon DeBartolo Group Inc. in September hijacked the assets from O'Connor, who had proposed a roll-up of the fund and two other shopping center portfolios into a public REIT (P&I, Sept. 15).

    The deal with O'Connor also does not include the Argo Partnerships, a pair of opportunistic funds with more than $650 million in assets. O'Connor Capital Inc. and J.P. Morgan Capital Corp., a merchant bank, serve as general partners of the funds.

    Upon the completion of the transaction J.P. Morgan will have one of the broadest real estate product lines to offer its clients.

    J.P. Morgan's offerings included mortgage and equity separate account investment vehicles, core real estate as well as opportunistic real estate and management of REIT portfolios.

    The property mix includes allocations to industrial, offices, apartments, single-family housing, retail and timber/agriculture.

    The addition of O'Connor Realty Advisors enhances J.P. Morgan's presence in retail properties and in the separate account business, according to Tin Heise, managing director and head of J.P. Morgan's real estate group.

    "We have been underweight in retail for several years," said Mr. Heise. "Retail looks like it may be becoming attractive.

    "We have been studying retail for the last couple of years and watching the market carefully," said Mr. Heise.

    "We are in the early stages of formulating an investment strategy," he said.

    "So to bring in a talented group with expertise in retail would be valuable as well."

    The relationship between J.P. Morgan and J.W. O'Connor Inc. is longstanding and contributed to the decision between the two parties. The discussions about selling the unit preceded Mr. O'Connor's attempt to roll up the Retail Property Trust, said Mr. Heise.

    "It was a natural evolution of a close relationship with Mr. O'Connor," said Mr. Heise.

    "As our relationship has grown, his plans for his business have been changing," said Mr. Heise. "It became apparent that he was putting considerable focus on the opportunistic side of the business.

    "We are committed to core real estate," said Mr. Heise. "He (Mr. O'Connor) decided that it wasn't a business he was committed to for the long term.

    "It was advantageous for both parties."

    The addition of O'Connor caps a month of activity that saw J.P. Morgan enhance its identity in the alternative investment category. Morgan's money management subsidiary acquired the private equity team of AT&T Investment Management Co., an area in which it had a token presence (P&I, Oct. 27).

    Recommended for You
    Read the print edition of P&I
    Read the print edition of P&I
    Gender diversity is improving on FTSE 350 boards
    Gender diversity is improving on FTSE 350 boards
    FINRA honors Wharton's Olivia Mitchell with Ketchum Prize
    FINRA honors Wharton's Olivia Mitchell with Ketchum Prize
    The Institutional Investor's Guide to ESG Investing
    Sponsored Content: The Institutional Investor's Guide to ESG Investing

    Reader Poll

    January 25, 2023
    SEE MORE POLLS >
    Sponsored
    White Papers
    Show Me the Income: Discovering plan sponsor and participant preferences for cr…
    The Future of Infrastructure: Building a Better Tomorrow
    Outlook 2023: Opportunity in a volatile world
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Defined Contribution East
      • 2023 ESG Investing