JLL Income Property Trust, a daily net asset value non-traded real estate investment trust, announced the acquisition of Louisville Logistics Center, a one-million-square-foot, newly constructed Class A industrial property located in the industrial submarket of South Louisville, Kentucky.
JLL says the purchase price was approximately $82 million.
Louisville Logistics Center is leased through 2032 to a global transportation and logistics company with more than $100 billion in annual revenues and with an S&P “A” credit rating. JLL says the lease contains 2% annual rent escalations, along with two 10-year renewal options.
Constructed in 2022, the Louisville Logistics Center is a cross dock distribution center featuring 40-foot clear heights. JLL says the tenant has invested significant capital into equipment and technology specifically customized for their operations in the property.
“Louisville’s central geographic location, irreplaceable transportation infrastructure, and strong interstate highway access make it a desirable and strategic location for both regional and national logistics,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “The property’s new construction, significant improvements by the tenant, and a 10-year lease to an investment-grade Fortune 100 company, make this an attractive addition to our carefully constructed warehouse portfolio. Further, pricing on this quality of property is nearly 150 basis points improved over market pricing 18 months ago. For investors like us with access to capital, these market conditions should present some exceptional investing opportunities.”
The property is within 20 miles of major distribution hubs including UPS Worldport (Air Distribution Hub), UPS Centennial Hub (Ground Distribution Hub), and the Louisville International Airport.
This investment brings JLL Income Property Trust’s aggregate industrial allocation to nearly $2.2 billion, or 32 percent of the portfolio, across 59 properties in 13 targeted warehouse markets.
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