JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) with $6.3 billion in portfolio assets, today announced the acquisition of Northeast Atlanta Distribution Center, a Class A industrial property of 458,000 square feet strategically located in Northeast Atlanta’s industrial submarket, one of Metro Atlanta’s top submarkets for industrial properties. The newly constructed warehouse, long-term tenant, and single tenant was acquired for approximately $54 million.
Alan Swaringen, President and CEO of JLL Income Property Trust, said: “The Northeast Atlanta distribution center is an excellent fit within our geographically diverse industrial portfolio due to its location near irreplaceable transportation infrastructure, first-class construction, and the positive dynamics of the Atlanta industrial market. “. “Northeast Atlanta’s industrial sub-market has seen exceptional rental growth, paving the way for all Atlanta sub-markets. Overall, Atlanta has proven to be a strong industrial market and has been ranked fifth nationally by LaSalle Research & Strategy in part due to its structure. Business friendly tax, easy access to major roads and a large staffing base. Industrial properties remain a plus target in our portfolio due to strong and persistent tenant demand and the positive long-term outlook for the sector which we believe will generate stable income for our shareholders.”
Atlanta is the fourth largest warehouse market in the United States with nearly 800 million square feet of industrial space. With a well-developed transportation network consisting of interstate highways, the nation’s busiest airport, and rail infrastructure including direct links to the Port of Savannah, the fourth largest container port in the United States for export, Atlanta is the primary distribution center for the southeastern United States. It is also within a two-day drive of about 80 percent of the US population.
Strategically located in the Northeast Atlanta sub-market, the Northeast Atlanta Distribution Center is the largest market in Atlanta and includes the metro area’s most diverse tenant base, attracting large block distribution tenants and small to mid-size tenants across a wide range of industries. The property’s location also benefits from its proximity to Interstate 85, which provides access to Atlanta, the Carolinas, Tennessee, and Florida. According to LaSalle Research & Strategy’s primary industry target market analysis, the Northeast Atlanta submarket is one of the “overweight” LaSalle markets given its above-average scores on total return combined with low expected volatility. In 2021, this sub-market has seen 11.3 percent growth in industrial rents, and 39 percent growth in rent over the past five years.
This Class A property was purchased off-market and benefits from a 7-year lease with an annual rent increase of 3 percent.
JLL Income Property Trust’s total industrial allocation now stands at more than $1.9 billion, or approximately 31 percent of its $6.3 portfolio, and includes 54 properties in 12 major markets, all rated highly or target markets by LaSalle Research and Strategies Group .
JLL Income Property Trust is a daily, institutionally managed NAV REIT that provides investors with a growing portfolio of commercial real estate investments selected by the institutional investment management team and sponsored by one of the world’s leading real estate services firms.
For more information about the JLL Income Property Trust, please visit our website at www.jllipt.com.
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