JLL Income Property Trust, a daily valued perpetual life REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), purchased Pinole Point Distribution Center in the Bay Area suburb of Richmond, California for an undisclosed amount.
The newly constructed distribution center includes two class A warehouses totaling 477,000 square feet that are located near major interstate highways, the Port of Oakland, Oakland International Airport and the entire San Francisco Bay Area. The property is 100 percent leased to Amazon and Williams-Sonoma with a weighted average lease term of 7.2 years.
“Acquiring high quality, state-of-the-art warehouses in select, primary transportation hubs continues to be a core component of our industrial investment strategy. These attributes are highly sought after, particularly in this market where modern buildings are in extremely short supply and warehouse vacancies are at 2 percent,” said Allan Swaringen, president and CEO of JLL Income Property Trust. “This is our ninth industrial acquisition this year, and the 27th property investment we’ve made in the industrial sector representing an industrial sector investment of over $515 million.”
The San Francisco Bay Area is the second most densely populated major American city with a population exceeding 7 million and representing more than 20 percent of California’s residents. LaSalle’s research and strategy team has identified the San Francisco Bay Area as a target warehouse market with significant supply constraints and strong rent growth potential.
Jones Lang LaSalle Income Property Trust owns and manages a portfolio of office, retail, industrial and apartment properties located primarily in the United States. Since 2012, the company has raised a total of approximately $1.2 billion through its ongoing public and various private offerings, as well as its distribution reinvestment plan. As of June 30, 2016, it owned interests in 62 properties, of which 61 are located in the U.S. and one is located in Canada.