LaSalle and L3 Capital Acquire Mixed-Use Asset in Boston’s Downtown Crossing

CHICAGO (June 22, 2017) — LaSalle Investment Management (“LaSalle”), announced that its U.S. value-add fund LaSalle Income & Growth Fund VII (“Fund VII”) has closed on the acquisition of a majority equity interest in 399 Washington Street (“DTX399”), a 77,000-square-foot mixed-use property that spans six stories in the vibrant Downtown Crossing submarket of Boston’s CBD.

Fund VII completed the acquisition through a joint venture with L3 Capital (“L3”) who will act as the operating partner, and Colliers International has been retained as the leasing agent for the property.

Once home to a former Barnes & Noble store, DTX399 offers high visibility and an ideal footprint for prospective retail and creative office users, yet has remained vacant even as the Downtown Crossing submarket has shown dramatic improvement. The property is positioned along the heavily-trafficked Washington Street corridor and benefits from pedestrian traffic from the Downtown Crossing T station. The property is also situated in one of the fastest growing high-end residential neighborhoods in Boston. Millennium Tower was recently constructed directly across from DTX399, and is the tallest residential building in downtown Boston with 442 luxury condominiums.

Joseph Munoz, Investment Officer for LaSalle’s Income & Growth fund series, commented: “We are excited to expand our partnership with L3 Capital, an experienced, urban retail-focused partner with an impressive track record in gateway markets. LaSalle continues to grow its ownership in the Boston CBD, and will bring its market knowledge and renovation experience to our partnership with L3.”

Tim Phair, Co-Founder and Managing Principal of L3 Capital, added:  “L3 Capital is excited about adding this premier asset to our portfolio in such a dynamic corridor.  Boston’s DTX399 has long been on our radar as an incredible repositioning opportunity, and we are eager to begin working with our partners at LaSalle Investment Management to bring our vision for the building to life.”

This transaction represents the fifth asset LaSalle has acquired in the Boston MSA since 2015, following its purchase of an interest in 10 Post Office Square on behalf of LaSalle Income & Growth Fund VII in March 2017, 10-20 Channel Center on behalf of an institutional separate account in December 2016, 800 Huntington Avenue on behalf of its core open-end fund in March 2015, and 50 Post on behalf of an institutional separate account in December 2015.

About LaSalle Income & Growth Funds
The LaSalle Income & Growth funds are the firm’s flagship closed-end U.S. value add fund series, with the first fund in the series launched in 1996.  Aggregate fund series capital commitments total $2.6 billion, with over $5.5 billion invested in over 97 property investments across all funds in the series.  Fund VII seeks to acquire under-managed, under-capitalized, or mispriced assets to be repositioned as core assets. Property level-investment strategies include lease-up, renovation/repositioning and ground-up development. Fund VII began acquiring assets in 2016.

About L3 Capital
L3 Capital is a best-in-class boutique prime urban retail real estate investment firm that targets institutional quality core-plus and value-add urban retail investments within first tier metropolitan markets.

Founded in October 2009, L3 Capital is characterized as an entrepreneurial, innovative and high-energy real estate investment firm that is grounded in impressive experience and expertise. With diverse institutional backgrounds in investment and development, the principals of L3 Capital possess complementary skills that include acquisitions, asset management, and capital markets, giving them a unique mixture of agility and fluency. The combination of an operating capability with investment acumen gives L3 Capital its competitive edge, allowing the principals to identify inconsistencies, dislocations, and value opportunities in order to realize superior risk-adjusted investment returns.

The longstanding adage in the real estate business — “location, location, location” — is at the heart of the L3 Capital brand, reflecting the company’s focus on investing in well-located real estate assets in major metropolitan markets — San Francisco, Los Angeles, Chicago, New York, Boston, Miami and DC. Learn more at

About LaSalle Investment Management 

LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $60.5 billion as of Q3 2018 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit

This information is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made by means of a private placement memorandum. Past performance is not indicative of future results.

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