JLL Income Property Trust Expands Its Portfolio with Richmond Distribution Center Acquisition

JLL Income Property Trust Acquires Richmond Distribution Center

In a significant move to enhance its industrial real estate portfolio, JLL Income Property Trust has announced the acquisition of the Richmond Distribution Center, located in Richmond, Virginia. The purchase was made for about $40.7 million, showcasing the company’s commitment to strategic investments in high-quality properties.

Property Overview

The Richmond Distribution Center is an impressive Class A industrial building, spanning nearly 280,000 square feet. Currently, it is fully leased to two reputable international tenants, ensuring a secure income stream. The property benefits from a favorable lease structure with an average lease term of 8.4 years, coupled with annual rent escalations that surpass 3%. Acquired in March 2025, the state-of-the-art facility was built in 2022 and features advanced specifications, including a spacious 200' truck court area, a clear height of 32', ample truck storage, and refrigerated cold storage facilities.

Situated just two miles from Richmond International Airport and eight miles from the I-95 corridor, the center is ideally positioned for logistics and distribution. Its proximity to the Port of Virginia, the third-largest port on the East Coast, further enhances its strategic value, contributing to a strong industrial market.

Market Dynamics

Richmond’s industrial sector has shown robust growth, with increasing tenant demand and low vacancy rates, alongside a notable 94% rise in asking rents since 2015. This demonstrates the city’s desirability for long-term real estate investment. According to Allan Swaringen, the President and CEO of JLL Income Property Trust, “Richmond's strong industrial market fundamentals and access to transit and logistics infrastructure make it a strategic and desirable region for us to invest.”

Moreover, the acquisition is part of JLL Income Property Trust's broader strategy to leverage significant capital raised from previous transactions and investments made by its sponsor, JLL. The trust is optimistic about future prospects as market pricing adjusts following recent shifts in the Federal Reserve's interest rates.

Strategic Significance

The acquisition aligns with JLL Income Property Trust’s emphasis on acquiring properties that provide vital links within distribution and transportation networks. The Richmond Distribution Center is strategically located within the Southeast Richmond submarket, offering immediate access to Interstate 895, facilitating connectivity with major thoroughfares like I-95 and I-295.

As of the end of 2024, industrial properties represented 32% of JLL's total portfolio, reflecting a strong conviction in this asset class. JLL Income Property Trust currently manages assets worth approximately $6.6 billion across diverse segments, including residential, industrial, grocery-anchored retail, healthcare, and office spaces. With aspirations to further diversify its portfolio, this acquisition is a stepping stone towards sustainable growth.

Closing Thoughts

As the real estate market evolves, JLL Income Property Trust remains committed to an investment strategy driven by empirical research and market insight. The Richmond Distribution Center acquisition underscores its strategic vision to capture opportunities within the industrial real estate sector. Investors and stakeholders can expect continued diversification and growth as JLL Income Property Trust navigates the changing landscape of real estate investment.

For further details about JLL Income Property Trust, please visit www.jllipt.com.