JLL Income Property Trust, a daily net asset value real estate investment trust, has sold a three-building industrial warehouse portfolio located in South Seattle to Charlie’s Produce, one of the current tenants, for nearly $73 million. The original purchase price was approximately $38 million.
JLL Income Property Trust said that the sale at more than $125 per square foot was near record pricing for an older vintage property in this market and realized a leveraged equity multiple of 2.6 times its initial investment made originally in 2013. Proceeds from the sale will be reinvested to “further diversify” the REIT’s portfolio.
The 323,000-square-foot, three-building portfolio was less than 80 percent leased and had a weighted average lease term of under two years with significant near-term lease rollover.
Allan Swaringen, president and chief executive officer of JLL Income Property Trust, said that the sale removed nearly $5.5 million in future capital expenditures required to re-tenant the buildings.
“While increasing our portfolio’s allocation to the industrial sector is one of our investment priorities, in this case, a sale to one of the property’s long-standing tenants provided well-above target investment performance to our stockholders while also de-risking one of our largest near-term lease maturities…,” said Swaringen.
“Sometimes harvesting gains and redeploying capital in properties and markets with more attractive risk-adjusted returns is prudent – even when we are selling out of a targeted overweight property sector,” he added.
JLL Income Property Trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), which owns and manages a portfolio of multifamily, industrial, office and grocery-anchored retail properties located in the United States, has more than $3.7 billion in portfolio assets and 86 properties. The REIT has raised $2.1 billion in investor equity as of April 2021.