JLL Income Property Trust, a daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), purchased a 41,000-square-foot warehouse at Pinole Point Distribution Center in Richmond, California for an undisclosed sum. The acquisition was part of a three-property portfolio of warehouses totaling 518,000, all of which are 100 percent leased with a weighted average lease term of approximately seven years.
The REIT purchased the other two warehouses in September 2016, as reported by The DI Wire.
“We are pleased to complete the acquisition of this three-property portfolio. High quality, state-of-the-art warehouses in select, primary transportation hubs are highly sought after, particularly in this market where modern buildings are in extremely short supply and overall warehouse vacancy rates are at 2 percent,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “This is our 10th industrial acquisition this year, and the 28th property investment we’ve made in the industrial sector representing an industrial sector investment of over $525 million.”
Pinole Point Distribution Center is located close to major interstate highways, the Port of Oakland, Oakland International Airport and the entire San Francisco Bay Area.
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 September 30, 2016, it owned interests in 68 properties, of which 67 are located in the U.S. and one is located in Canada.