JPMorgan To Liquidate $1.4B Real Estate Fund

Bisnow reports that JPMorgan Asset Management is liquidating its JP Morgan US Real Estate Income and Growth Fund more than two decades after launching the vehicle, according to investor documents reviewed by multiple outlets. The core-plus fund held roughly $1.4B in assets as of late 2025 and is expected to unwind over the next several years.

A JPMorgan spokesperson said the firm believes the decision is “in the best interests of the fund’s investors” and plans to manage the process “thoughtfully and deliberately” to maximize value during the liquidation.

A Long-Running Core-Plus Strategy Winds Down

The fund launched in 2002 and built a diversified portfolio across office, industrial, and multifamily assets. According to IPE Real Assets, office properties accounted for about 16% of the portfolio, with the remainder concentrated in industrial and apartment investments.

News of the closure surfaced in board meeting documents prepared by Meketa Investment for the Ohio Bureau of Workers’ Compensation and was first reported by IPE Real Assets. The documents indicate the liquidation process could take as long as three years.

The Details 

Performance data from the North Dakota Retirement Investment Office illustrates the challenges facing the fund. The North Dakota Legacy Fund’s $170M investment posted a net loss of 1.7% in 2025, an improvement from a 3.7% decline the previous year.

Over a three-year period, the value of North Dakota’s stake fell 9.7%, though the investment still generated modest 0.28% growth over five years. Those returns reflect broader pressure on open-end and core-plus real estate vehicles grappling with higher interest rates, refinancing challenges, and uneven office valuations.

The fund still maintained meaningful scale despite those headwinds. Meketa Investment documents cited by Bisnow showed total assets reached approximately $1.4B in late 2025.

Institutional Capital Is Still Flowing

JPMorgan’s decision arrives during a broader rebound in institutional real estate fundraising. Global real estate funds raised $172B in 2025, up 13% year over year, according to a With Intelligence report published by S&P Global.

Still, fundraising momentum has slowed from the peak years of 2021 and 2022 as elevated Treasury yields continue to weigh on borrowing costs and deal activity. Transaction volume increased 25% year over year during Q1 2026, but April sales volume dropped 33% to $24.7B, according to the same report. The pressure is also spilling into multifamily investment vehicles, where several REITs face mounting liquidation risks amid weaker rent growth.

The disconnect highlights a bifurcated market: investors continue allocating capital to real estate, but older diversified funds with office exposure remain under pressure from valuation resets and slower exits.

Why It Matters

The liquidation signals how difficult the past several years have been for legacy core-plus strategies, especially those carrying any meaningful office allocation. Even relatively modest office exposure can weigh on portfolio performance as leasing demand and asset pricing remain volatile across major markets.

The move also reflects a broader institutional trend toward newer fund structures, niche sector bets, and managers with shorter hold periods or specialized strategies. Investors are still committing capital to real estate, but they are becoming more selective about where and how they deploy it.

What’s Next

JPMorgan now faces the challenge of executing a multi-year liquidation while preserving asset values in a still-fragile transaction market. Market watchers will likely focus on how quickly the firm can dispose of office assets and whether industrial and multifamily holdings attract stronger pricing.

The wind-down could also become a case study for other aging open-end and core-plus funds facing redemption pressure, muted returns, and shifting investor preferences in a higher-rate environment.