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JPMorgan now takes an 8-figure loss after unloading real estate in a deal with a ‘mega landlord’, several new reports are confirming.

JPMorgan Chase has reportedly sold a significant real estate investment in Los Angeles, California, incurring an eight-figure loss.

The bank’s Investment Management division disposed of a large apartment complex with retail space located in the Little Tokyo area, partnering with a “mega landlord,” as reported by The Real Deal.

The complex, situated at 232 East 2nd Street, was purchased for around $116 million in February 2020 but was recently sold for $86.1 million, resulting in a loss of $29.9 million.

This sale highlights the ongoing challenges in the commercial real estate market, which is grappling with higher interest rates.

The situation in the market is particularly stark with recent office building sales reflecting low occupancy rates.

For example, a prominent building in St. Louis sold for just $3.6 million last month, a steep drop from its 2006 price of $205 million.

Additionally, Allstate sold a building in Chicago for about $11 million, down from its purchase price of $29.7 million in 2022.

US banks are increasingly looking to reduce their exposure to commercial real estate loans, with reports indicating that institutions like Goldman Sachs, Citigroup, and Capital One have been selling loans in major markets like New York, San Francisco, and Boston.

In this particular transaction, JPMorgan sold the entire complex to FPA Multifamily, a firm that owns approximately 770 properties nationwide and has been actively acquiring real estate during the market downturn.

FPA has reportedly engaged in about $24 billion worth of real estate transactions in the US.

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Also Read: The US Treasury Direct is Now Freezing Customer Accounts

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Market News Today - JPMorgan Now Takes An 8-Figure Loss After Unloading Real Estate. — Market News Today – JPMorgan Now Takes An 8-Figure Loss After Unloading Real Estate.

Citibank now fires a whistleblower for ‘underperformance’, after the former employee provided records requested by the OCC.

Citi has filed a countersuit against its former employee, Kathleen Martin, alleging that she was terminated not for refusing to falsify records for the Office of the Comptroller of the Currency (OCC), as she claimed in her lawsuit from May, but rather for being unable to properly fulfill the duties of her role.

Martin, who was let go from her position as Citi’s interim data transformation chair in September 2023 after nearly two years with the bank, had alleged in her lawsuit that she was fired for not agreeing to Chief Operating Officer Anand Selva’s request to conceal information from the OCC that would make the lender “look bad.”

In a revised lawsuit, Kathleen Martin has accused Citi’s Chief Operating Officer Anand Selva of intentionally deceiving the bank by wanting to misrepresent Citi’s compliance metrics to the Office of the Comptroller of the Currency (OCC).

Martin claims Selva sought to conceal information from the OCC that would have made the bank “look bad.”

However, Citi maintains that Martin’s termination in September 2023 was not due to her refusal to falsify records, but rather because she lacked the necessary “leadership and engagement skills” to effectively execute the role of interim Data Transformation Chair, which she had been appointed to after the previous chair, Rob Casper, departed the company.

Citi asserts that during Martin’s interviews and assessment for the interim role, it was identified that she needed to improve in areas like her “dogmatic nature, lack of innovation and lack of experience driving the execution of complex change across Citi.”

Once Casper left, Citi’s senior leadership, including COO Selva, determined that Martin could not successfully fulfill the demands of the interim chair position.

According to Citi, COO Anand Selva tried to help the plaintiff, Kathleen Martin, improve her performance in the interim Data Transformation Chair role.

Selva allegedly set up one-on-one meetings and working groups to facilitate better collaboration and working relationships with stakeholders.

Selva’s HR team also provided Martin with a senior mentor to support her development.

In May 2023, Citi leadership discussed a plan to improve Martin’s performance.

In July, Selva conveyed Martin’s mid-year review before she raised any concerns about his behavior.

Soon after, Martin contacted HR and expressed fears about her job security.

Citi claims that Martin “felt her position was at risk,” but the bank asserts that internal documents showed she “exceeded expectations” and that CEO Jane Fraser had commended her for her “gravitas” and ability to build “strong relationships” at the bank.

However, Citi says Martin failed to heed the feedback provided, and she was ultimately removed from the Data Transformation Chair role because she lacked the “executive level relationships” and leadership needed to successfully execute the data transformation efforts.

Citi says the data transformation work was too critical for the bank to tolerate Martin’s underperformance.

Citi denies Martin’s claims that she protested the reporting of a key metric accurately or that Selva objected to it.

The bank says Selva and Martin met in September 2023 to discuss reporting certain metrics using red, amber, and green scales.

Also Read: A Massive US Bank is Now Closing Credit Cards

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Home prices have now increased 67% in Florida with homeowners insurance skyrocketing 42% since 2020.

After five decades in education, Janet Stone envisioned a peaceful retirement in her condo overlooking Florida’s Atlantic coast.

However, she now finds herself back in the workforce, teaching preschoolers with disabilities, and living with her son in Las Vegas to manage a $100,000 bill from her condo association for a large-scale concrete restoration project.

“I shouldn’t say it, but it really sucks to work every day and not have a cent and have to wonder, ‘Can I afford groceries this week?’” Stone said.

She bought her Ormond Beach condo for $400,000 in 2021, but now all her earnings go toward the renovation costs.

Aging condo buildings across Florida face rising expenses and significant repairs to meet new regulations after the tragic collapse of the Champlain Towers in 2021, which resulted in 98 fatalities.

While these regulations aim to enhance safety, they are placing financial strain on many condo owners and threatening affordable housing options along Florida’s coastline.

Florida House Representative Vicki Lopez noted that the need for repairs could force some residents, particularly those on fixed incomes, to seek alternative housing during an already challenging affordable housing crisis.

The rising costs of housing are affecting many households in Florida, where home prices have surged by 67% since 2020, and homeowners insurance rose by 42% last year, per NBC News.

The median-income households in most Florida counties now struggle to afford median-priced homes.

Older condominiums have typically provided an alternative for those unable to buy single-family homes, often housing retirees and single-income households.

However, the financial burden of living in these buildings is increasing.

New legislation requires condo buildings over three stories and older than 30 years to pass structural inspections by the end of the year, impacting around 900,000 units statewide.

This law also mandates that condo associations maintain minimum reserves for future repairs, leading to increased monthly dues.

For example, residents at the Palm Bay Yacht Club in Miami are facing a $140,000 special assessment for building improvements, while owners at Daytona Beach’s Surfside condos have paid between $50,000 and $60,000 for concrete repairs and window replacements.

In Orlando, Regency Gardens residents were told they would need to pay $22,000 each for upgrades, prompting some to remove the board in hopes of reducing costs.

In severe cases, residents are being forced to evacuate due to structural issues found during inspections.

Greg Batista, a professional engineer, mentioned that he is currently working on a Miami Beach building that may require evacuation due to safety concerns.

Stone, who purchased her condo to be near her daughter and grandchild, was shocked to receive a $100,000 special assessment for necessary repairs just a year after buying the property.

Having already depleted most of her retirement savings for the down payment, she now faces the risk of foreclosure if she cannot pay the assessment.

Despite considering selling her condo, she found that the assessment had lowered property values significantly; a similar unit is now listed for $335,000, down from her purchase price.

With limited options, Stone returned to work at a school in Las Vegas, teaching children with autism.

“I am exhausted every single day,” she said.

“I come home and promptly fall asleep and get up and do it the next day.”

She estimates it will take two years of full-time work to pay off the assessment, after which she hopes to return to her Florida condo, currently shared with her son.

“This was supposed to be my retirement, a time to enjoy life with my family,” she lamented.

The rising costs of condo ownership are leading to more units being listed for sale and driving down prices.

Statewide, the number of condos for sale has increased by 23% in the last six months, while prices have dropped by 4.5%.

In Volusia County, where Stone lives, inventory is up 28% and sale prices have decreased by 9%.

Realtor Krista Goodrich noted that many condos are struggling to sell due to buyer hesitance stemming from concerns about structural integrity and the impact of hurricanes.

While some buildings may require little to no repairs, many are now facing the consequences of years of inadequate maintenance and substandard building practices, compounded by the corrosive effects of Florida’s saltwater on concrete and rebar.

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Also Read: Allstate Now Increasing Home Insurance Rates in California By 34%

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Economy News Today - Home Prices Have Now Increased 67% in Florida. — Economy News Today – Home Prices Have Now Increased 67% in Florida.

Allstate is now increasing home insurance rates in California by 34%, making it the largest rate increase among major insurers in the state.

This month, the Department of Insurance approved Allstate’s request to raise home insurance rates by an average of 34.1% for approximately 350,000 customers in the state, per Bloomberg.

While some homeowners may experience decreases of up to 57%, at least one customer could face a nearly 650% increase.

The new rates will be reflected in bills at the first renewal date after November 7, as outlined in the company’s filings with the state.

This is the largest rate increase by a major insurer since 2021, when Homesite Insurance Co., a subsidiary of American Family Insurance, was approved for a 38.2% hike in homeowner rates.

Allstate’s increase pertains solely to homeowner’s insurance, but the company also has a pending request to raise rates for condominium owners by an average of 30%.

“Higher home values and repair costs coupled with more frequent, severe weather lead to higher payments to help customers recover, so we need to adjust rates to better reflect the cost of protecting our customers,” a company spokesperson said in a statement.

A company spokesperson did not specify when the insurer would start accepting new policies again.

The conditions for resuming new policies include implementing a series of reforms known as the Sustainable Insurance Strategy, which Insurance Commissioner Ricardo Lara has pledged will be ready by year-end.

These reforms aim to change the pricing formulas and expedite the approval process for rate adjustments, reports SF Chronicle.

Experts believe these changes may enable insurers to increase their prices further.

In return, they will be expected to write more policies in regions most affected by the insurance crisis.

“Under Proposition 103, insurance companies are increasing their rates — legally — but they are not writing more policies. That is the problem Commissioner Lara is solving with the Sustainable Insurance Strategy,” Michael Soller, deputy insurance commissioner with the Department of Insurance, said in a statement.

He added: “California still has lower insurance costs on average than many large states.

Increasing availability is how we will get to affordability in all areas.”