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JLL REIT Subscribes $200 Million DST Portfolio

JLL Income Property Trust, a daily net asset value non-traded real estate investment trust, announced that it has fully subscribed JLLX Diversified II DST.

The company also acquired a Kentucky property for $82 million, provided an update on the status of its quarterly share redemptions and monthly net asset value per share for its classes of common stock, as of March 31, 2023.

JLL says JLLX Diversified II DST is a five-property, $200 million diversified portfolio that was structured as a Delaware statutory trust.

The portfolio included:

  • Silverstone Marketplace – a class-A, grocery-anchored shopping center located in the Phoenix metropolitan area leased to Sprout’s Farmers Market and a range of inline tenants.
  • Suwanee Distribution Center – a bulk industrial distribution facility in the greater Atlanta market leased to Mitsubishi.
  • Three medical office properties – the South Reno Medical Center, Duke Medical Plaza and Sugarland Medical Plaza, which are leased to a group of medical tenants.

“JLLX Diversified II, DST was our largest 1031 exchange offering to date,” said Drew Dornbusch, head of JLL Exchange, said. “We experienced significant demand from wealth management firms and their property owner clients who recognized the high-quality nature of the real estate, the diversification benefits of the portfolio, and the innovation of our JLL Exchange offering.”

Since launching the program in 2020, JLLX has attracted approximately $900 million across 16 DST offerings from property owners seeking to defer taxes on appreciated investment real estate. JLL Income Property Trust has completed six full-cycle UPREIT transactions totaling nearly $470 million to date.

JLL also announced that on April 20, 2023, the company acquired Louisville Logistics Center, a 1 million-square-foot, newly constructed Class A industrial property located in the industrial submarket of South Louisville, Kentucky.

The purchase price was approximately $82 million.

The company reported that it fulfilled all share redemption requests, a total of 2,195,707 shares for approximately $30.2 million in April. Eligible share repurchases during the second quarter are limited to approximately $168.0 million, or 5% of the NAV of all classes of shares, indicating that redemption requests should continue to remain within the REIT’s 5% quarterly limit.

The net asset value of Class A shares decreased from $13.76 each on March 31, 2023, to $13.69 as of April 28, 2023.

Class M shares decreased from $13.78 each to $13.72.

Class A-I shares decreased from $13.80 to $13.73.

Class M-I shares decreased from $13.78 to $13.72.

Class D shares decreased from $13.76 to $13.70.

Since the beginning of 2012, the REIT has raised a total of approximately $4.9 billion through its ongoing public and various private offerings, as well as its distribution reinvestment plan, including a total of approximately $196.6 million during the first quarter of 2023.

As of Dec. 31, 2022, JLL Income Property Trust owned interests in a total of 135 properties and more than 4,300 single-family rental houses located in 26 states. As of March 31, 2023, the total company NAV across all share classes was approximately $3.4 billion.

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