John Hofmann

Describe the past 12 months in one word, then tell us the key lending opportunities you and your team have uncovered.

Collaboration. J.P. Morgan Chase offers every type of debt financing in the commercial real estate space. Collaborating across business lines to deliver multiple financing solutions under one roof is really rewarding. We differentiate ourselves by leveraging our expertise in structured and complex transactions to create customized solutions for our clients. 

As for the lending opportunity, there’s a huge commitment from the firm to support affordable and workforce housing, and we use our balance sheet to provide liquidity to that space in a significant way. The ability to pair our balance sheet with Fannie and Freddie puts us in a great position to deepen our commitment to increasing the housing supply. 

Are rate cuts the silver bullet the industry has been waiting for to solve all woes?

Rate cuts from the Fed are one lever to help relieve some of the stress on the industry, but those cuts primarily impact the short end of the curve. Our clients often seek relief in the long end, which has been more volatile. What’s promising is that fundamentals are very strong — we are seeing positive rent growth, as well as the industry adapting and innovating to manage expenses. The topic of rates is very important when discussing capital strategies with our clients. Our goal is to offer fixed- and floating-rate options and let our clients decide what is best for their business plan.  

What excites you most about today’s lending market?

The conversation around the need for more affordable housing is important. As we all know, there is a need for all types of housing, and that is at the forefront of the commercial real estate discussion. As a firm, we are deeply committed to that space and constantly working to innovate new solutions to create more attainable housing. We have creative construction and bridge programs specifically tailored to affordable and workforce housing. Those programs allow us to be with our clients from the first shovel in the ground to the permanent loan.

Tougher market: GFC or these past four years?

GFC was tougher, without a doubt. We experienced a real lack of liquidity during that period, whereas today debt financing is readily available, just at terms that may not work as assets rebalance. During the Global Financial Crisis, overleveraged assets were a dominant concern. Today, the market faces headwinds from rising interest rates and increased expenses, which is much more manageable. Our clients find opportunities in every environment, and our goal is to support them through every cycle, wherever they need us.

Are you still as enthusiastic about multifamily as you were three years ago?

Absolutely. As the nation’s No. 1 multifamily lender, we continue to be consistent providers of capital to the multifamily sector across the country. We are working on a variety of exciting things with our clients as they look for opportunities — whether that’s optimizing their current portfolio, recapitalizations, or looking to grow and acquire. Regardless of where our multifamily clients are in the real estate life cycle, we want to be there for them as a one-stop shop with a full suite of lending options to provide the right solution to meet their business needs.  

Tell us about a deal you’re especially proud of this past year.

I’m particularly proud of our team for closing an $800 million deal. It was a portfolio with 17 geographically dispersed assets, and we closed the deal in under 60 days. It was an execution where we showcased the full breadth of the platform and its capabilities. We worked across three business lines within the bank: balance sheet lending, capital markets and agency financing to deliver a unique solution to the client. The team also successfully closed a $2 million affordable project this year.

We have an incredible group supporting a full spectrum of clients and a robust pipeline. I’m excited for what’s ahead.

Lightning Round:

If I could lend money to one person in the world, it would be…

We all know you are not supposed to pick your favorite child, but if I have to answer I’d say all our repeat clients. 

AI: Helpful or fad?

Helpful — as a firm, we have invested a ton into AI.  

How many days are you in the office today?

Five — we’re in real estate!  

Modify or foreclose?

Modify, and work to an acceptable outcome for both parties. 

Pref equity or mezz?

Pref equity — it’s a much more lender-friendly structure with a higher probability of getting the project complete.  

Class B office: Tear down and start over, or convert?

Convert to housing, to combat the shortage.  

Song title that encapsulates your current mindset?

“Free Fallin’ ” — my wishful thinking on rates. 

Dream dinner date?

I’ve been traveling a ton, so my wife and kids.