JPMorgan-Led Syndicate Provides JLL Income Property Trust With $1 Billion Credit Facility
JLL Income Property Trust, a daily net asset value non-traded REIT managed by LaSalle Investment Management and sponsored by Jones Lang LaSalle (NYSE: JLL), has secured a $1 billion credit facility from a syndicate of 10 real estate lenders. The facility is designed to provide the REIT with additional financial flexibility as it looks to capitalize on what management identifies as the early stages of a real estate recovery cycle.
The $1 billion facility is structured into two components: a $600 million revolving line of credit for operations and acquisitions, and a $400 million term loan to strengthen the company’s long-term capital base.
The agreement also includes an accordion feature, allowing the REIT to increase the total capacity to $1.3 billion. The facility carries an initial two-year term with three one-year extension options. Interest is based on the secured overnight financing rate plus a spread 1.2% to 1.95%.
“This new facility supports our growth plans and increases our flexibility to invest at an opportune time,” said Allan Swaringen, president and CEO of JLL Income Property Trust. Swaringen said the commitment from 10 financial institutions reflects the quality of the trust’s portfolio and its performance track record.
The syndicate is led by JPMorgan Chase Bank, N.A. as administrative agent. Co-syndication agents, joint lead arrangers and joint bookrunners include Bank of America, N.A.; Capital One, National Association; PNC Capital Markets LLC; and Wells Fargo Securities LLC.
Additional lenders include BMO Bank N.A., Fifth Third Bank, Regions Bank, TD Bank and The Bank of New York Mellon.
Per prior reporting by AltsWire the REIT recently acquired West Boston Medical Center, a medical outpatient complex in Watertown, Mass., for approximately $32 million. The approximately 53,000-square-foot property is 100% leased to a single tenant under a 15-year lease with average annual rent escalations of 2.8%.
JLL Income Property Trust is a daily NAV REIT that owns and manages a diversified portfolio of residential, industrial, grocery-anchored retail, healthcare, office and debt investments across the country.
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