JLL Income Property Trust acquires Louisville Distribution Center
JLL Income Property Trust, an institutionally managed daily NAV REIT with USD3.4 billion in portfolio assets, has acquired Louisville Distribution Center, a one million-square-foot, Class A industrial property located in the top-tier industrial submarket of South Louisville. The purchase price was USD95 million.
“The Louisville industrial market’s low vacancy rate of just 4.2 per cent and central location makes it an excellent market for us to continue to increase our allocation to core industrial assets located in close proximity to irreplaceable transportation infrastructure,” says Allan Swaringen, JLL Income Property Trust President and CEO. “The property’s modern layout is bolstered by significant building improvements invested by the tenant, which, coupled with the 10-year lease to an investment-grade credit, Fortune 100 company is expected to provide predictability of cashflow for years to come.”
According to LaSalle Research & Strategy, Louisville is an overweight market whose merit is driven by an above average return outlook and strong rent growth expectations. Louisville’s central location at the confluence of major highways allows distribution to over half the US population within a day’s drive via interstate highways I-24, I-64, I-65, I-71 and I-75, reinforcing JLL Income Property Trust’s research-led industrial strategy focused on acquiring properties with primary access to critical hubs of distribution and transportation infrastructure. The property is also within 20 miles of major distribution hubs including UPS Worldport (Air Distribution Hub), UPS Centennial Hub (Ground Distribution Hub), and the Louisville International Airport.
The property includes 40-foot clear heights, cross-docking, LED motion sensor lighting, 234 trailer parking spaces and HVAC throughout. This investment brings JLL Income Property Trust’s aggregate industrial allocation to nearly USD900 million, or 28 per cent of the portfolio, across 34 properties in 12 targeted warehouse markets.