JLL Income Property Trust, a daily net asset value, non-listed real estate investment trust with approximately $6.6 billion in portfolio equity and debt investments, announced the acquisition of Richmond Distribution Center, a Class A industrial building located in Richmond, Va., for a purchase price of approximately $40.7 million.
Richmond Distribution Center totals approximately 280,000 square feet and is 100% occupied by two international tenants. The leases have an 8.4 year weighted average lease term with annual rent escalations exceeding 3%. Constructed in 2022, the REIT described Richmond Distribution Center as a state-of-the-art, institutional quality property, built with modern specifications and features such as a 200-foot truck court area, clear heights of 32 feet, ample truck storage spaces, and refrigerated cold storage.
“Richmond’s strong industrial market fundamentals and access to transit and logistics infrastructure make it a strategic and desirable region for us to invest,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “The property’s strong income profile, high occupancy, modern construction, and strategic location in this central East Coast market make it an ideal fit for our carefully curated industrial portfolio.”
Located just two miles away from Richmond International Airport and eight miles from the Interstate 95 corridor, the property is centrally located on the Eastern Seaboard and less than two hours from the Port of Virginia, the third largest port on the East Coast.
The Richmond market has experienced growing tenant demand, low vacancies, and a 94% increase in asking rents since 2015, making it a desirable market for long-term ownership.
According to the REIT, Richmond Distribution Center’s strategic location in the Southeast Richmond submarket and its immediate access to I-895 – which provides connectivity to the major thoroughfares of I-95 and I-295 – make it a strong fit for the portfolio, reinforcing JLL Income Property Trust’s research-led industrial strategy focused on acquiring properties with access to critical hubs of distribution and transportation infrastructure.
Industrial real estate is one of JLL Income Property Trust’s highest conviction property sectors. As of Dec. 31, 2024, industrial investments comprised 32% of the total $6.6 billion portfolio, with $2 billion in industrial assets across 57 properties. As previously reported by AltsWire earlier this month, the REIT sold an industrial/flex property located in the San Diego submarket of San Marcos, Calif. Acquired in July 2021 for approximately $14 million, the sale of the property, located at 237 Via Vera Cruz, supported the fund’s recycling strategy targeting stronger properties positioned for better long-term growth.
“After generating significant dry powder through dispositions in the fourth quarter of 2024 and investment of $100 million by our sponsor JLL, we are well-positioned to take advantage of an attractive pipeline of new investments. As market pricing adjusts from the recent Fed interest rate cuts and we enter what looks to be a new market cycle for real estate, we are optimistic about core real estate’s long-term performance,” added Swaringen.
JLL Income Property Trust is an institutionally managed, daily NAV REIT that brings to investors a growing portfolio of commercial real estate investments selected by an institutional investment management team and sponsored by one of the world’s leading real estate services firms.
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