JLL Income Property Trust JV to Acquire Interest in $1.3 Billion NYC Portfolio
JLL Income Property Trust entered into an agreement to acquire an approximate 14 percent interest in a portfolio of 15 New York City area retail properties through a newly formed retail fund. The purchase price for the portion is approximately $85 million.
The portfolio contains approximately 2.7 million square feet across urban infill locations in Manhattan, Brooklyn, Queens, the Bronx, Staten Island and New Jersey. It is approximately 98.5 percent leased to a mixture of entertainment companies, large national retail tenants and smaller regional and local retail tenants. The aggregate gross value is approximately $1.3 billion, with the company’s 14 percent interest equating to approximately $179 million in gross assets.
LaSalle Investment Management Inc., the company’s advisor, advises two other institutional clients who also entered into agreements to acquire interests in the retail fund as limited partners. If the transaction closes on the terms agreed, LaSalle will advise clients representing an approximate 90 percent ownership in the fund.
The retail fund has an initial term of 15 years that can be extended in five-year intervals by a vote of the limited partners or may be dissolved prior to the initial term for a variety of reasons, including the liquidation of the NYC property portfolio.
Madison International Holdings NYC Core Retail, LLC, an affiliate of New York based real estate fund manager Madison International Realty LLC, is the general partner of the retail fund. As general partner, Madison may earn up to a 10 percent promoted interest after limited partners receive a 9 percent return. The retail fund has an advisory committee of which the company is a member. The company is permitted to transfer its interest in the fund to an affiliate or another limited partner or to a qualified third party with consent of the general partner.
Earlier this month, The DI Wire reported that JLL Income Property Trust purchased two properties for $123 million and appointed a new audit committee member.
Jones Lang LaSalle Income Property Trust owns and manages a diversified portfolio of apartment, industrial, office, retail and other properties located primarily in the United States. The company intends to further diversify in the future through the acquisition of international properties and real estate-related debt and equity securities. The REIT was incorporated in May 2004 and owns interests in 28 properties located in ten states and Canada.
