JLL Income Property Trust Acquires Minneapolis Industrial Park for $66.5 Million
JLL Income Property Trust – a daily net asset value, non-listed real estate investment trust with approximately $6.6 billion in portfolio equity and debt investments – has purchased a Class A industrial business park for approximately $66.5 million.
Minneapolis Distribution Center in Maple Grove, Minn., is comprised of two buildings totaling 443,000 square feet and is 100% occupied by a diverse mix of tenants. The leases contain 3% to 3.5% annual rent escalations, with at least five-year renewal options for all tenants.
Constructed in 2023, the Minneapolis Distribution Center is a state-of-the-art, institutional quality property. The REIT said it includes features such as 49 dock doors, five drive-in doors, 32′ clear heights, and ample parking space to be well-positioned for tenants’ future needs. Located minutes away from downtown Minneapolis, the 12th largest industrial market in the United States, the property is in the heart of a leading sub-market known as the Northwest Interchange. This market has seen significant leasing activity in the past 10 years and become the region’s primary focus for industrial demand over the past two decades.
“Minneapolis’ strong industrial market, critical distribution infrastructure, and growing manufacturing demand make it a strategic and desirable region for us to invest,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “The property’s new construction, high occupancy, and strategic location in this leading industrial market make it a standout addition to our carefully curated industrial portfolio.”
The property’s strategic location near major highways and railway lines allows efficient distribution to the nearby Twin Cities metro area and major midwestern markets, reinforcing JLL Income Property Trust’s industrial strategy focused on acquiring properties with primary access to critical hubs of distribution and transportation infrastructure. The Northwest Interchange region has also attracted major distribution companies including a UPS and a FedEx SmartPost.
As of Sept. 30, 2024, industrial investments comprised 32% of JLL Income Property Trust’s $6.6 billion portfolio, with $2.1 billion in industrial assets across 59 properties. Its other investments include residential, grocery-anchored retail, healthcare, and office properties across the nation. The REIT is sponsored by LaSalle Investment Management.
“As market pricing has adjusted, the outlook for this investment is stronger than what we’ve seen since before the Fed started hiking rates in early 2022. With our significant dry powder, attractive pipeline of new investments, and a belief that we are at the start of a new real estate market cycle – we are bullish in our outlook for core real estate’s long-term performance,” added Swaringen.
Last month, JLL Income Property Trust fully subscribed JLLX Diversified V, DST. The $100 million program was structured as a Delaware statutory trust and consisted of a 192-unit apartment community – Princeton North Andover – in North Andover, Mass., and two Class A industrial distribution facilities totaling more than 400,000 square feet and located in Elgin, Ill.
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