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JLL Income Property Trust Fully Subscribes $95 Million Diversified DST

JLL Income Property Trust, a daily net asset value, non-traded real estate investment trust with nearly $7 billion in portfolio equity and debt investments, fully subscribed its JLLX Diversified III, DST.

JLLX Diversified III, DST consists of two healthcare-oriented properties – an outpatient medical property in Florham Park, N.J., leased to Summit Health Management, and a Class A industrial property located in Durham, N.C., leased to KBI Biopharma.

Launched in November 2023, the $95 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, maintaining their allocation to real estate and enjoying the opportunity to realize long-term appreciation in a tax efficient manner.

The JLL Exchange program offers private placements through the sale of interests in DSTs holding core real estate investment properties.

“We are pleased to have fully subscribed JLLX Diversified III, DST,” said Drew Dornbusch, head of JLL Exchange. “We continue to see strong demand from 1031 exchange investors and their financial advisers, many seeking a solution for the significant tax consequences associated with the sale of appreciated investment real estate, and a desire to find an estate planning solution that facilitates generational wealth transfer of real estate.”

“Due to demographic tailwinds like a growing aging population, the healthcare sector continues to show strong fundamentals,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “The JLLX Diversified III, DST gave investors access to this important property sector, as well as further diversification by property type with both an industrial and outpatient medical facility as part of the program. This proved to be an attractive solution for wealth management firms and their property owner clients who were seeking to reinvest proceeds from the sale of appreciated investment real estate in a tax efficient manner.”

Since its inception in 2020 and through December 2023, JLLX has attracted more than $1 billion across 19 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 10 full cycle UPREIT transactions totaling $820 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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