JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), has purchased the Fremont Distribution Center located in Fremont, California for $47 million.
Located in the Oakland/East Bay area submarket, the Fremont Distribution Center is a fully-leased two-building industrial portfolio totaling approximately 240,000 square feet.
The company noted that the San Francisco Bay area overall, and specifically the East Bay and Silicon Valley industrial submarkets, are experiencing record low vacancies due to high demand and numerous barriers to new construction, along with the general strength of the local economy.
Freemont is located at the nexus between the two industrial submarkets of Oakland and Silicon Valley which have posted 1.6 percent and 1.4 percent vacancies respectively – and with limited supply growth they have had a vacancy rate below 3 percent for the past four years.
“Fremont’s location between Oakland and San Jose, along with its proximity to Interstate 880 and the Port of Oakland, reflects our strategy to own high quality industrial buildings in dense, infill locations in close proximity to essential transportation infrastructure,” said Allan Swaringen, president and CEO of JLL Income Property Trust.
He added, “The real estate fundamentals in the Bay Area industrial markets have been strong, and demand is expected to remain solid. This investment brings our aggregate industrial allocation to nearly $650 million and over 6 million square feet representing 26 percent of the value of the overall JLL Income Property Trust portfolio.”
Jones Lang LaSalle Income Property Trust owns and manages a multi-billion portfolio of 70 office, retail, industrial and apartment properties located in the United States, as of the fourth quarter of 2018. Since 2012, the company has raised a total of approximately $1.6 billion through its ongoing public and various private offerings, as well as its distribution reinvestment plan, according to Summit Investment Research.