JLL Income Property Trust, a daily net asset value real estate investment trust, has purchased Silverado Square, a 48,000-square-foot retail center in Las Vegas, for $24.4 million. The retail property is anchored by Sprouts Farmers Market, shadow anchored by CVS, and includes a parcel that is entitled for nearly 5,000 square feet of rentable retail space.
Constructed in 2018, Silverado Square is located on two thoroughfares in the Silverado Ranch master-planned community, which is home to more than 55,000 people. The property has a weighted average lease term of more than eight years, including a 15-year lease signed by Sprouts in 2018 that has 10 percent rent escalations every five years. Overall, the property is 98 percent leased.
“Silverado Square is a well-located property that fits within our thesis of acquiring high-quality, grocery-anchored retail centers,” said Allan Swaringen, president and CEO. “Its location next to two major thoroughfares and near a large master-planned community, along with its strong tenant roster and long-term lease commitments, should bode well for the center’s continued success in generating stable income. As we saw throughout the pandemic, grocery-anchored retail is resilient, and can continue to provide returns for our stockholders throughout volatile market conditions.”
The fully entitled parcel, directly to the east of the existing structures, provides an opportunity for the REIT to build nearly 5,000 square feet of additional retail space and drive net operating income. The new building will be leased by three tenants and is scheduled for completion later this year.
The company noted that Silverado Square ranks in the top quartile of LaSalle Research & Strategy’s proprietary Supermarket Trading Area Rating System (STARS), which ranks more than 40,000 grocery-anchored retail centers in the US. The high score is due to Silverado Square’s proximity to population density and median income that are both above the national average.
JLL Income Property Trust’s grocery-anchored retail allocation is 23 properties in 13 markets valued at nearly $850 million and representing approximately 13 percent of its overall portfolio.
Jones Lang LaSalle Income Property Trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) oversees a $6.8 billion portfolio of residential, industrial, office and grocery-anchored retail properties. Since the beginning of 2012, the REIT raised a total of approximately $4.1 million through its ongoing public and various private offerings, as well as its distribution reinvestment plan. The REIT raised approximately $418.6 million during the second quarter 2022. As of June 30, 2022, the total company NAV across all share classes was approximately $3.4 billion.