JLL Income Property Trust Acquires Northeast Atlanta Distribution Center
CHICAGO (April 27, 2022) — JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) with $6.3 billion in portfolio assets and advised by LaSalle, today announced the acquisition of Northeast Atlanta Distribution Center, a 458,000-square-foot, Class A industrial property strategically located in the Northeast Atlanta industrial submarket, one of the Atlanta metro’s top submarkets for industrial properties. The recently constructed, long-term leased, single-tenant warehouse was acquired for approximately $54 million.
“Northeast Atlanta Distribution Center is an excellent fit within our geographically diversified industrial portfolio given its location near irreplaceable transportation infrastructure, Class A construction and the positive dynamics of Atlanta’s industrial market,” said Allan Swaringen, JLL Income Property Trust President and CEO. “The Northeast Atlanta industrial submarket has seen exceptional rent growth, leading the way for all of Atlanta’s submarkets. Atlanta overall has proven to be a strong industrial market and is ranked fifth nationally by LaSalle Research & Strategy due in part to its business-friendly tax structure, easy access to major thoroughfares and large employment base. Industrial properties continue to be a target overweight for our portfolio given sustained strong tenant demand and a positive, long-term outlook for the sector that we believe will yield stable income for our stockholders.”
Atlanta is the fourth largest warehouse market in the US with nearly 800 million square feet of industrial space. With a well-developed transportation network consisting of interstate highways, the nation’s busiest airport, and rail infrastructure including direct links to the Port of Savannah, the fourth largest US container port for export, Atlanta is the primary distribution center for the southeast United States. It is also within a two-day drive from nearly 80 percent of the US population.
Northeast Atlanta Distribution Center is strategically located in the Northeast Atlanta submarket, Atlanta’s largest, and includes the metro area’s most diverse tenant base, attracting both large block distribution tenants and small to mid-size tenants across a broad spectrum of industries. The property location also benefits from its proximity to Interstate 85 providing accessibility to Atlanta, the Carolinas, Tennessee and Florida. According to LaSalle Research & Strategy’s Core Industrial Target Market Analysis, the Northeast Atlanta submarket is one of LaSalle’s “overweight” markets given its above average scores on overall total return combined with lower expected volatility. In 2021, this submarket experienced 11.3 percent industrial rent growth, and 39 percent rent growth over the past five years.
This Class A property was acquired off-market and benefits from a 7-year lease term with 3 percent annual rent escalations.
JLL Income Property Trust’s aggregate industrial allocation is now over $1.9 billion, or approximately 31 percent of its $6.3 portfolio, and includes 54 properties across 12 key markets, all ranked highly or as target markets by LaSalle’s Research & Strategy group.
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.
Jones Lang LaSalle Income Property Trust, Inc. is a daily NAV REIT that owns and manages a diversified portfolio of high quality, income-producing residential, industrial, grocery-anchored retail, healthcare and office properties located in the United States. JLL Income Property Trust expects to further diversify its real estate portfolio over time, including on a global basis.
About LaSalle Investment Management
LaSalle Investment Management is one of the world's leading real estate investment managers. On a global basis, we manage approximately $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. The firm sponsors a complete range of investment vehicles including open- and closed-end funds, separate accounts and indirect investments. Our diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. For more information please visit www.lasalle.com and LinkedIn.
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