JLL Income Property Trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), a non-listed, daily valued perpetual life real estate investment trust, purchased Silverstone Marketplace in the Phoenix suburb of Scottsdale, Arizona for $47 million.
Silverstone Marketplace is a newly-constructed shopping center anchored by national health food chain, Sprouts Farmers Market. The 78,000-square-foot property is 100 percent leased to a variety of national and regional tenants with a weighted average remaining lease term of 10 years. Silverstone is located within close proximity to a number of affluent master-planned communities as well as Scottsdale Airpark, the second-largest employment center in Arizona.
“This acquisition reflects our strategy to increase our portfolio’s allocation to high-quality, grocery-anchored centers in top nationally ranked retail markets,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “Scottsdale’s high discretionary income coupled with a growing population, and with Sprouts’ flagship store as our anchor, the property successfully caters to the demographic found in North Scottsdale.”
Phoenix has one of the strongest economies in the nation, ranking sixth out of 147 metros in LaSalle’s US Regional Economic Index report, with a diverse economy and population that is expected to grow at twice the national rate through 2020. The Scottsdale submarket is one of the most affluent areas in the country with median household incomes among the highest in the nation and with home values over double the Phoenix average.
“This is our seventh acquisition in the grocery-anchored retail format, all in targeted retail locations rated in the top quartile of LaSalle’s proprietary ranking of more than 40,000 grocery-anchored shopping centers. LaSalle’s ranking grades shopping centers based upon their surrounding population density, household income, and trade area competition. Highly rated centers like Silverstone Marketplace trigger a strong buy signal for us.”
Jones Lang LaSalle Income Property Trust owns and manages a portfolio of office, retail, industrial and apartment properties located primarily in the United States. Since 2012, the company has raised a total of approximately $1.1 billion through its ongoing public and various private offerings, as well as its distribution reinvestment plan.