Key Takeaways
- • JPMorgan Asset Management is liquidating its JP Morgan US Real Estate Income and Growth Fund, a 24-year-old core-plus vehicle that held $1.4 billion in assets as of late 2025, with the wind-down process projected to take up to three years.
- • The fund has experienced significant valuation erosion, with North Dakota's $170 million stake declining 9.7% over three years and posting a 1.7% loss in 2025, though it achieved 0.28% growth over a five-year period.
- • The fund carries 16% exposure to office assets, with remaining allocations split between industrial and multifamily properties, reflecting vulnerability to the ongoing commercial real estate downturn.
- • JPMorgan's decision to close the fund arrives amid a broader market rebound, as global real estate funds raised $172 billion in 2025—up 13% year-over-year—signaling investor appetite for the sector despite ongoing office challenges.
- • The liquidation underscores persistent challenges in core-plus real estate strategies, particularly those with meaningful office exposure, even for institutional managers with substantial scale.
Summary
JPMorgan Asset Management is winding down its JP Morgan US Real Estate Income and Growth Fund after 24 years of operation, according to disclosure documents reviewed by the Ohio Bureau of Workers' Compensation's consultant Meketa Investment and first reported by IPE Real Assets. The fund, which launched in 2002 as a flagship core-plus vehicle, held $1.4 billion in assets as of late 2025 and is expected to complete its liquidation over approximately three years.
The fund's closure reflects deteriorating performance across its portfolio, particularly in its office segment. The vehicle maintains 16% exposure to office assets, with the remainder distributed across industrial and multifamily properties. The North Dakota Legacy Fund, which held a $170 million position in the JPMorgan fund, reported a net loss of 1.7% in 2025—an improvement from the prior year's 3.7% decline but still indicative of persistent headwinds. Over a three-year period through 2025, the North Dakota stake's valuation contracted 9.7%, though the five-year return managed to eke out 0.28% growth, underscoring the fund's recent underperformance.
JPMorgan Asset Management stated in a formal response that "as a fiduciary, we believe this decision is in the best interests of the fund's investors" and committed to proceeding "thoughtfully and deliberately, with a continued focus on maximizing value throughout the process." The timing of the liquidation is noteworthy given broader market dynamics: global real estate funds raised $172 billion in 2025, representing a 13% increase from 2024, with the five largest funds maintaining steady capital flows since 2022 according to research from With Intelligence by S&P Global. This backdrop suggests the closure reflects fund-specific challenges rather than sector-wide capital flight, particularly the structural headwinds facing office-heavy portfolios in an era of hybrid work and rising vacancy rates.
The fund's closure reflects deteriorating performance across its portfolio, particularly in its office segment. The vehicle maintains 16% exposure to office assets, with the remainder distributed across industrial and multifamily properties. The North Dakota Legacy Fund, which held a $170 million position in the JPMorgan fund, reported a net loss of 1.7% in 2025—an improvement from the prior year's 3.7% decline but still indicative of persistent headwinds. Over a three-year period through 2025, the North Dakota stake's valuation contracted 9.7%, though the five-year return managed to eke out 0.28% growth, underscoring the fund's recent underperformance.
JPMorgan Asset Management stated in a formal response that "as a fiduciary, we believe this decision is in the best interests of the fund's investors" and committed to proceeding "thoughtfully and deliberately, with a continued focus on maximizing value throughout the process." The timing of the liquidation is noteworthy given broader market dynamics: global real estate funds raised $172 billion in 2025, representing a 13% increase from 2024, with the five largest funds maintaining steady capital flows since 2022 according to research from With Intelligence by S&P Global. This backdrop suggests the closure reflects fund-specific challenges rather than sector-wide capital flight, particularly the structural headwinds facing office-heavy portfolios in an era of hybrid work and rising vacancy rates.
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