LaSalle Registers Nontraded REIT Targeting Commercial Real Estate Debt
JLL has filed to register a second nontraded real estate investment trust – this one aimed at commercial real estate debt rather than equity – extending the firm’s push into private wealth capital alongside its existing JLL Income Property Trust.
JLL Property Finance Trust, or PFT, filed to register its common shares with the U.S. Securities and Exchange Commission on Sept. 16 on a Form 10 registration statement. The newly formed Maryland trust will originate, acquire, finance, manage, and dispose of a portfolio of commercial real estate debt, and it is externally managed by LaSalle. Unlike most nontraded REITs, which sell shares to the retail public through registered public offerings, PFT is being sold through a continuous, blind-pool private placement, offered to accredited investors under Regulation D and to non-U.S. investors under Regulation S.
PFT’s primary strategy targets what LaSalle calls “RE debt investments” – senior mortgage loans, subordinated debt, mezzanine loans, and B-notes secured by commercial real estate – with a smaller allocation to commercial mortgage-backed securities and commercial real estate collateralized loan obligations. The company expects to target loan-to-value ratios of roughly 60% to 75% on senior, “core-plus” loans and up to 85% on higher-yield subordinate positions, and it intends to run portfolio-wide leverage of 60% to 80% once it has substantially deployed proceeds from its offering, according to the company.
LaSalle describes PFT as a companion to JLL Income Property Trust, the sponsor’s existing nontraded, equity-focused core REIT. Where the prior REIT invests directly in properties, PFT will sit on the debt side of the capital stack.
LaSalle said that it has operated a first-mortgage debt platform since 2005, raising four closed-end debt funds across 2012, 2017, 2022, and 2025 vintages and originating more than $6.6 billion in loans over that period. Extending that debt track record into a permanent-capital REIT structure gives LaSalle two nontraded vehicles running side by side, one equity and one debt.
PFT enters an already established field of nontraded commercial real estate debt REITs, including Benefit Street Partners Realty Trust, CIM Real Estate Finance Trust, FS Credit Real Estate Income Trust, and Goldman Sachs Real Estate Finance Trust. The news arrives as sponsors across the industry have leaned further into private credit strategies amid continued refinancing demand in commercial real estate.
PFT will offer Class S, Class D, Class I, and Class E common shares, initially priced at $25.00 per share, the company said. LaSalle will earn an annual management fee of 1.25% of net asset value on Class S, D, and I shares, plus a performance fee equal to 12.5% of the company’s core earnings above a 5% annualized hurdle rate, subject to a catch-up provision. The REIT intends to offer shareholders quarterly redemptions, capped at 5% of aggregate NAV per quarter, with a 5% early-redemption discount applied to shares held less than one year. LaSalle Investment Management Distributors will serve as dealer manager.
Bradley Gries, who became LaSalle’s chief executive officer in January 2026, is serving as PFT’s interim chief executive officer. Gregory Falk, a LaSalle managing director, is interim chief financial officer and treasurer, and David Doherty, LaSalle’s Americas general counsel, is the trust’s sole trustee and interim general counsel. The company expects to expand its board to five trustees, a majority of them independent, at what the company calls its “initial private wealth closing.”
PFT has not yet commenced operations. As of the filing date, LaSalle was its only shareholder, holding all 40 outstanding common shares for an initial capital contribution of $1,000, and the trust has no other assets, no employees, and no operating history. The company has not disclosed a target offering size or an expected date for the trust’s first private wealth closing.
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