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JLL Income Property Trust Acquires Apartment Community in Portland Suburb

JLL Income Property Trust Acquires Apartment Community in Portland Suburb. Alternative investments, REIT, real estate investment trust, JLL Income Property Trust, Oregon, multifamily, residential

JLL Income Property Trust, a daily net asset value non-traded real estate investment trust, recently announced the acquisition of Creekview Crossing, a Class A 183-unit apartment community located in the suburban Portland market of Sherwood, Ore. The purchase price was approximately $61 million and includes the assumption of an in-place $26 million mortgage loan with a below-market interest rate of 3.09%.

“Creekview Crossing’s desirable location in an affluent suburban area with high barriers to entry make this acquisition an outstanding addition to our already substantial residential portfolio allocation of more than $2.7 billion of apartment communities and single-family rentals,” said Allan Swaringen, president and chief executive officer.

“This is an extremely attractive investing environment,” continued Swaringen. “While property fundamentals in real estate remain strong, valuations are at a more attractive entry point that should produce long-term value for our portfolio, as signs are pointing to the start of a new market cycle.”

Constructed in 2009, Creekview Crossing offers garden-style and townhome features with amenities designed to appeal to residents of the upscale suburban area of Sherwood. Located approximately 12 miles from downtown Portland, Sherwood is home to a diverse base of economic drivers, including advanced manufacturing, healthcare, and business services. Sherwood has also seen strong population growth, according to JLL Income Property Trust, attributable to its connectivity to the greater Portland metro area, proximity to the region’s employer base, and limited rental alternatives. Also, Sherwood School District ranks fourth out of 160 school districts in Oregon.

“Our unique UPREIT structure [also known as a Section 721 exchange] along with our diversified portfolio and daily valuation were attractive to a portion of the selling group who chose to contribute this property in exchange for interests in our operating partnership rather than selling for cash,” said Swaringen. “This provided half of the ownership group a tax efficient sale with the benefit of long-term estate planning while allowing JLL Income Property Trust to make a strategic acquisition with a significantly reduced cash outlay.”

This investment brings JLL Income Property Trust’s aggregate residential allocation to more than $2.7 billion, or 42 percent of the portfolio, comprised of 28 apartment communities and more than 4,400 single-family rental homes.

JLL Income Property Trust is an institutionally managed real estate investment trust with approximately $7 billion in portfolio equity and debt investment.

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