JLL Income Property Trust Sells Seattle Warehouses at Record Price
CHICAGO, June 8, 2021 /PRNewswire/ -- JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), with more than $3.7 billion in portfolio assets and 86 properties, announced the sale of a three-building industrial warehouse portfolio located in South Seattle. South Seattle Distribution Center was sold to Charlie's Produce, one of the current tenants at the property for nearly $73 million. The 323,000 square foot, three-building portfolio was less than 80 percent leased and had a weighted average lease term of under two years with significant near-term lease rollover. JLL Income Property Trust's sale at over $125 per square foot was near record pricing for an older vintage property in this market and realized a leveraged equity multiple of 2.6 times its initial investment made originally in 2013.
"While increasing our portfolio's allocation to the industrial sector is one of our investment priorities, in this case, a sale to one of the property's long-standing tenants provided well above target investment performance to our stockholders while also de-risking one of our largest near-term lease maturities. This sale also removed nearly $5.5 million in future capital expenditures required to re-tenant these buildings", said Allan Swaringen, President and CEO of JLL Income Property Trust. "As a core, income-focused investor, sometimes harvesting gains and redeploying capital in properties and markets with more attractive risk-adjusted returns is prudent – even when we are selling out of a targeted overweight property sector," noted Swaringen. "As a perpetual, open-end fund, investing across economic and real estate cycles requires active risk management and timely dispositions."
Since JLL Income Property Trust's inception in 2012, it has sold 40 properties generating proceeds of more than $820 million on an arms-length basis within plus or minus 2 percent of their most recent independently appraised value.
Rental rates for warehouse properties in South Seattle more than doubled since Income Property Trust's acquisition. Further, as lease rates approached $1.00 per square foot per month in this in-fill market, larger tenants began to relocate for modern buildings and more affordable locations. Proceeds from the sale will be reinvested to further diversify JLL Income Property Trust's portfolio, which today includes over $1 billion of industrial holdings in 38 buildings across 12 key markets, or approximately 30 percent of its $3.7 billion portfolio. Income Property Trust's industrial portfolio has experienced exceptional leasing momentum over the last year. Most recently, JLL Income Property Trust acquired three industrial properties in key markets including Phoenix, Indianapolis and Dallas/Fort Worth.
JLL Income Property Trust is an institutionally managed, daily NAV REIT that brings to investors a growing portfolio of commercial real estate investments selected by an institutional investment management team and sponsored by one of the world's leading real estate services firms.
For more information on JLL Income Property Trust, please visit our website at www.jllipt.com.
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SOURCE JLL Income Property Trust
Company Codes: NASDAQ-MF:ZIPIAX, NASDAQ-MF:ZIPIMX, NASDAQ-MF:ZIPTAX, NASDAQ-MF:ZIPTMX
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