Jones Lang LaSalle Makes New $100 Million Co-Investment in JLL REIT
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 – announced that its sponsor and global commercial real estate and investment management company Jones Lang LaSalle Incorporated committed to make an additional co-investment of equity in the company.
Jones Lang LaSalle will acquire $100 million of the REIT’s common stock at the daily NAV public offering price on the date of the investment. The proceeds will be used to accelerate the company’s investing activities at what is believed to be an opportune time in the current real estate recovery cycle.
“JLL Income Property Trust, and its companion offering, JLL Exchange, have established themselves as innovative, market leading offerings for the high-net-worth, private client segments,” said Christian Ulbrich, chief executive officer of Jones Lang LaSalle. “Investing for growth in LaSalle’s flagship private wealth solutions aligns our interests with investors that seek world-class alternative investment solutions as real estate markets are poised for a strong recovery.”
The $100 million commitment increases the company’s “dry powder” available to take advantage of attractive investment opportunities. Together with this commitment, the REIT said it has generated significant investing capacity from successful capital recycling through property sales, expansion of its institutional Delaware statutory trust offerings through JLL Exchange, and financial advisers returning to allocate to core real estate.
According to the company, it has a robust pipeline of new investments targeted to close before year end that exceeds $150 million. The REIT recently experienced mixed results with a pair of apartment sales: one in a Seattle suburb for an $11.3 million profit, roughly, and one in the heart of downtown Chicago for an approximate $20.5 million loss.
“Jones Lang LaSalle’s additional $100 million co-investment is consistent with one of LaSalle’s key value propositions – striving to think like owners and act like investors,” commented Mark Gabbay, global CEO of LaSalle Investment Management, the adviser to both JLL Income Property Trust and JLL Exchange. “There is no greater demonstration of our investor mindset than investing alongside our clients in these two industry leading real estate offerings.”
Earlier in October, it fully subscribed JLLX Grand Prairie, DST. The $65 million program was structured as a DST designed to provide 1031 exchange investors the opportunity to reinvest proceeds from the sale of appreciated real estate while also deferring taxes. It consisted of two industrial distribution facilities located in Grand Prairie, Texas, a submarket of the Dallas-Fort Worth metropolitan area.
“When Income Property Trust launched as the first perpetual daily valued NAV REIT in 2012, Jones Lang LaSalle invested significant co-investment capital to create a seed portfolio that aligned our interests with investors looking to allocate to a stable value and income-oriented real estate solution,” said Allan Swaringen, president and CEO of the REIT. “Jones Lang LaSalle’s increased commitment today is a demonstration of our conviction in these flagship investment solutions. After navigating two years of a challenging investment environment triggered by unprecedented interest rate hikes, there are signs that the coming months will be seen as a favorable investment vintage for core real estate.”
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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