Dealmaker: JLL Income Property Trust Acquires Industrial Asset for $62M

JLL Income Property Trust, Chicago, acquired a Class A industrial portfolio in Indianapolis for $62 million.

Whitestown Distribution Center, a fully leased two-building portfolio, totals 720,000 square feet and delivered in 2020.

“The Indianapolis industrial market has the third-lowest vacancy rate in the U.S., making it an excellent location for us to increase our allocation to core industrial assets,” said JLL Income Property Trust President and CEO Allan Swaringen. The investment increased JLL Income Property Trust’s aggregate industrial allocation to more than $850 million, or 28 percent of the portfolio, across 36 properties in 12 warehouse markets.

Indianapolis’ central location allows distribution to more than half the U.S. population within a 16-hour drive. The northwest Indianapolis submarket is near the Indianapolis International Airport.

Swaringen noted JLL Income Property Trust seeks more properties with attractive risk-adjusted returns and strong income yields and said long-term leases to high-quality tenants in modern warehouse properties provide downside protection. “We remain bullish on the industrial sector,” he said.

The larger of the two buildings within Whitestown Distribution Center is 440,000 square feet and is occupied by an investment-grade tenant, while the second building totals 280,000 square feet and is leased to a third-party logistics company serving the healthcare industry. Combined, the assets have a nearly 10-year weighted-average lease term.