JLL Income Property Trust Buys Northeast Atlanta Industrial Property
Jones Lang LaSalle Income Property Trust, a daily net asset value real estate investment trust, has purchased the Northeast Atlanta Distribution Center.
Jones Lang LaSalle Income Property Trust, a daily net asset value real estate investment trust, has purchased the Northeast Atlanta Distribution Center, a Class A 458,000-square-foot industrial property located in the Northeast Atlanta industrial submarket, for approximately $54 million.
The recently constructed, single-tenant warehouse was purchased off-market and is within close proximity to Interstate 85 providing accessibility to Atlanta, the Carolinas, Tennessee and Florida. The unnamed tenant has a 7-year lease term with 3 percent annual rent escalations.
The property is located in Atlanta’s largest submarket, which is home to both large block distribution tenants and small to mid-size tenants across various industries.
According to LaSalle Research & Strategy, the Northeast Atlanta submarket is one of LaSalle’s “overweight” markets given its above average scores on overall total return combined with lower expected volatility. In 2021, this submarket experienced 11.3 percent industrial rent growth, and 39 percent rent growth over the past five years.
“Atlanta overall has proven to be a strong industrial market and is ranked fifth nationally by LaSalle Research & Strategy due in part to its business-friendly tax structure, easy access to major thoroughfares and large employment base,” said Allan Swaringen, the REIT’s president and chief executive officer. “Industrial properties continue to be a target overweight for our portfolio given sustained strong tenant demand and a positive, long-term outlook for the sector that we believe will yield stable income for our stockholders.”
Atlanta is the fourth largest warehouse market in the US with nearly 800 million square feet of industrial space.
JLL Income Property Trust’s aggregate industrial allocation is now more than $1.9 billion, or approximately 31 percent of its $6.3 portfolio, and includes 54 properties across 12 key markets.
Jones Lang LaSalle Income Property Trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) oversees a $6.3 billion portfolio of 119 residential, industrial, office and grocery-anchored retail properties. Since the beginning of 2012, the REIT raised a total of approximately $3.7 million through its ongoing public and various private offerings, as well as its distribution reinvestment plan.
