JLL Income Property Trust Fully Subscribes $100 Million Diversified DST
JLL Income Property Trust – a daily net asset value, non-traded real estate investment trust with approximately $6.6 billion in portfolio equity and debt investments – has fully subscribed JLLX Diversified V, DST. The $100 million program was structured as a Delaware statutory trust designed to provide 1031 exchange investors the opportunity to reinvest proceeds from the sale of appreciated real estate while also deferring taxes.
JLLX Diversified V, DST consisted of a 192-unit apartment community – Princeton North Andover – in North Andover, Mass., and two Class A industrial distribution facilities totaling more than 400,000 square feet and located in Elgin, Ill.
“We are pleased to have fully subscribed JLLX Diversified V, DST,” said Drew Dornbusch, head of JLL Exchange. “This is a testament to the strong demand we continue to see from 1031 exchange investors and their advisers who are seeking estate planning solutions which can facilitate the transfer of generational wealth, while mitigating the significant tax consequences associated with the sale of appreciated investment real estate.”
According to past reporting of The DI Wire, the REIT purchased Princeton North Andover in spring 2021 for $72.5 million. At the time, REIT sponsor Jones Lang LaSalle Incorporated’s research and strategy group listed suburban Boston as an “overweight” market and ranked it in the top five markets. The company noted that greater Boston is known for its highly educated labor market, which in turn, drives demand for high-end housing. JLL had said that North Andover’s average household income was more than $160,000 in 2021, with an average home sale price of more than $700,000. The REIT’s acquisition of Princeton North Andover, on an off-market basis, was at approximately $375,000 per unit.
The Illinois, two-building industrial facility constructed in 2020 – Elgin Distribution Center – was purchased by the REIT for approximately $47 million in January 2022.
“The residential and industrial sectors continue to show strong fundamentals, as rental growth trends remain resilient,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “JLLX Diversified V, DST provided investors access to these high-conviction property sectors in an investment solution designed to allow investors to maintain their real estate exposure while enjoying a range of tax and estate planning benefits.”
Earlier this month, Jones Lang LaSalle committed to make an additional equity co-investment in the REIT; specifically, it will acquire $100 million of the REIT’s common stock at the daily net asset value public offering price on the date of the investment. The sponsor said the proceeds will be used to accelerate the REIT’s investing activities at what is believed to be an opportune time in the current real estate recovery cycle.
Since its inception in 2019, JLL Exchange has attracted more than $1.5 billion across 24 DST offerings from property owners seeking to maintain a meaningful allocation to real estate in a tax efficient manner. JLL Income Property Trust has completed 14 full cycle UPREIT transactions totaling $960 million to date.
JLL Income Property Trust is an institutionally managed real estate investment trust that owns and manages a diversified portfolio of high quality, income-producing residential, industrial, grocery-anchored retail, healthcare and office properties located in the United States.
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