JLL Income Property Trust Buys South Louisville Distribution Center
JLL Income Property Trust, a daily net asset value real estate investment trust, has purchased the South Louisville Distribution Center, a 327,000-square-foot Class A industrial property.
JLL Income Property Trust, a daily net asset value real estate investment trust, has purchased the South Louisville Distribution Center, a 327,000-square-foot Class A industrial property, for $39.5 million.
Completed in August 2021, the South Louisville Distribution Center is located in the Bullitt County industrial submarket within close proximity to major distribution hubs, and includes cross docking, 36-foot clear heights and LED lighting. The property is fully leased for seven years to Rivian, an electric vehicle automaker and automotive technology company that recently completed an initial public offering. The lease includes annual rent increases of 2.75 percent.
“South Louisville Distribution Center is an excellent fit within our geographically diversified industrial portfolio given its location near irreplaceable transportation infrastructure, state-of-the-art construction and the positive dynamics of Louisville’s industrial market,” said Allan Swaringen, president and chief executive officer. “The Bullitt County submarket has also been a recent benefactor of supply constraints in the closer-in airport industrial submarket, with limited big-box vacancy, which should continue to create strong demand for industrial space there.”
“We have high conviction in the overall warehouse property sector and its ability to create stable, long-term cashflow, which is why we continue to view it as an overweight allocation for our portfolio,” he added.
JLL Income Property Trust’s industrial allocation is now more than $1.7 billion of warehouse holdings in 54 properties across 13 markets, representing the second largest property type allocation in the portfolio.
According to LaSalle Research & Strategy, “Louisville is an overweight market whose merit is driven by an above average return outlook, lower volatility and strong rent growth expectations.” The Louisville industrial market’s vacancy rate is 3.7 percent, below the 4 percent national average vacancy for industrial, the company said.
Jones Lang LaSalle Income Property Trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) oversees a $5.9 billion portfolio of residential, industrial, office and grocery-anchored retail properties. The REIT launched in October 2012 and has raised $2.5 billion in investor equity as of October 2021.
