JLL Income Property Trust Expands Its Portfolio with New Minneapolis Distribution Center Acquisition

JLL Income Property Trust Expands Its Portfolio

On December 11, 2024, JLL Income Property Trust made a significant addition to its portfolio by acquiring the Minneapolis Distribution Center. This Class A industrial business park, located in Maple Grove, Minnesota, was purchased for approximately $66.5 million, reinforcing JLL's commitment to high-quality real estate investments.

The Minneapolis Distribution Center features two well-designed buildings, offering a total of 443,000 square feet of space. Impressively, the property is fully leased, indicating strong demand in the area. Each lease is structured to include annual rent escalations of 3% to 3.5%, with tenants having the option to renew for at least five additional years.

Constructed in 2023, this facility exemplifies state-of-the-art design and construction techniques utilized by a top-tier developer. Some of its standout features include 49 dock doors, five drive-in doors, and 32-foot clear heights, all of which are designed to accommodate the future needs of its diverse tenant base. Furthermore, its location just minutes from downtown Minneapolis places it within the 12th largest industrial market in the United States, within a sub-market known as the Northwest Interchange. Over the past decade, this area has seen an upsurge in leasing activity, making it a prime location for industrial demand.

Allan Swaringen, President and CEO of JLL Income Property Trust, commented on the strategic acquisition, highlighting the robust industrial market of Minneapolis along with its critical distribution infrastructure and increasing manufacturing needs. He expressed optimism about the property, stating that its new construction, high occupancy rates, and prime location position it as a standout addition to their carefully curated industrial portfolio. Swaringen further noted that the market conditions are favorable now that pricing has stabilized post-the Federal Reserve's interest rate hikes in early 2022.

The logistical advantages of the property are substantial. Its strategic positioning near major highways and railways ensures that tenants can efficiently distribute goods to the nearby Twin Cities metro area as well as key midwestern markets. This approach aligns with JLL Income Property Trust's research-driven strategy, which emphasizes acquiring properties with significant access to essential distribution and transportation networks. The Northwest Interchange area is already home to major distribution companies, including UPS and FedEx SmartPost, making it an even more appealing investment location.

As of September 30, 2024, industrial investments constituted 32% of JLL Income Property Trust’s overall portfolio, amounting to $2.1 billion across 59 properties. This latest acquisition reinforces industrial real estate as a core focus for JLL, reflecting their strategic belief in long-term performance in this property sector.

To learn more about JLL Income Property Trust and their investment strategies, visit jllipt.com.

JLL Income Property Trust operates as a daily NAV REIT, managing a diverse portfolio that includes residential, industrial, grocery-anchored retail, healthcare, and office properties throughout the United States. Looking ahead, they expect to continue diversifying their real estate assets, potentially on a global scale.

For further inquiries, reach out to JLL Income Property Trust at their official contact points.