JLL Income Property Trust Expands Portfolio with Phoenix Area Industrial Facility Acquisition

JLL Income Property Trust Expands Portfolio in Phoenix Area

In a significant move to strengthen its position in the commercial real estate market, JLL Income Property Trust has recently acquired the Glendale Distribution Center, a Class A industrial warehouse facility located in Glendale, Arizona. The acquisition, valued at approximately $140 million, reflects the trust's commitment to expanding its portfolio in strategically important markets.

The Glendale Distribution Center boasts an impressive size of 1 million square feet and is entirely leased to a leading global sportswear manufacturer known for its robust credit profile. The terms of the lease are notably favorable, extending over 10 years with an annual rent escalation rate of 3.25%. Notably, the facility was constructed in 2023 and comes equipped with modern warehouse features, including 40-foot clear heights, expansive truck courts, advanced fire protection systems, LED lighting, and sufficient power capacity to accommodate the tenant's operational needs.

One of the standout aspects of this industrial property is its strategic location within a special Foreign Trade Zone. This designation allows the tenant to manage its sales points and inventory more efficiently, a crucial factor in today’s fast-paced retail environment. The Phoenix area has been recognized by CBRE as one of the fastest-growing markets in the United States, making it an attractive hub for industrial operations. This market development is particularly significant as many companies are relocating to the area due to favorable business conditions and evolving trade policies.

The Glendale Distribution Center is conveniently situated at an interchange off Loop 303, which enhances accessibility to essential transportation networks—less than 10 miles from Interstate 10—a strategic advantage that aligns with JLL Income Property Trust's focus on acquiring warehouse locations that are near vital logistics infrastructure.

Allan Swaringen, President and CEO of JLL Income Property Trust, expressed enthusiasm about the acquisition, stating, “Glendale Distribution Center is strategically located in a thriving industrial area, making it an attractive investment for us. Phoenix has become a popular location for company relocations as shifting trade policies have led to reshoring and nearshoring trends. We have seen the strong fundamentals of the industrial sector generate stable demand, particularly in areas near major distribution hubs.”

In analyzing its portfolio as of June 30, 2025, it is evident that industrial real estate is one of the trust's primary focus areas. 33% of its total portfolio, valued at approximately $6.5 billion, is in industrial investments, amounting to $2 billion across 58 properties. This robust positioning indicates a strong belief in the growth potential of the industrial sector.

JLL Income Property Trust operates as a daily NAV REIT, showcasing a growing portfolio of core real estate investments managed by a specialized institutional investment management team. This acquisition aligns with the trust's strategy to reinforce its holdings in high-quality warehouse facilities situated within target industrial markets.

As the demand for logistics and industrial properties continues to swell, driven by factors such as increasing e-commerce activities and supply chain reconsiderations, JLL Income Property Trust is well-poised to capitalize on emerging market opportunities. The trust plans to further diversify its portfolio over time, potentially extending its reach on a global scale.

For those interested in the potential growth of real estate investments, keeping an eye on JLL Income Property Trust's moves and the evolving industrial landscape in Phoenix will be crucial. For more information about JLL Income Property Trust and their investment strategy, please visit www.jllipt.com.

This latest acquisition illustrates a forward-thinking approach to real estate investment amid changing market dynamics, and JLL Income Property Trust's continuous growth signifies its commitment to providing value to its investors while navigating the complexities of modern real estate opportunities.