JLL Income Property Trust, an institutionally managed daily NAV REIT with around $6.6 billion in portfolio equity and debt investments, announced the acquisition of Richmond Distribution Center, a Class A industrial building located in Richmond, VA, for a purchase price of about $40.7 million.
Richmond Distribution Center totals about 280,000 square feet and is 100% occupied by two high-quality international tenants. The leases have an 8.4-year weighted average lease term and annual rent escalations exceeding 3%.
Constructed in 2022, Richmond Distribution Center is an institutional quality property, built with modern specifications and features such as a 200′ truck court area, clear heights of 32′, ample truck storage spaces, and refrigerated cold storage. Based just two miles away from Richmond International Airport and eight miles from the I-95 corridor, the property is centrally located on the Eastern Seaboard and less than two hours from the Port of Virginia, the 3rd largest port on the East Coast. The Richmond market has experienced growing tenant demand, low vacancies, and a 94% increase in asking rents since 2015, making it a desirable market for long term ownership.
Richmond Distribution Center’s strategic location in the Southeast Richmond submarket and its immediate access to Interstate 895 – providing connectivity to the major thoroughfares of the I-95 and I-295 – make it a strong fit for the portfolio, reinforcing JLL Income Property Trust’s research-led industrial strategy focused on acquiring properties with access to critical hubs of distribution and transportation infrastructure.
Industrial real estate is known as one of JLL Income Property Trust’s highest conviction property sectors. And as of December 31, 2024, industrial investments comprised 32% of the total $6.6 billion portfolio, with $2.0 billion in industrial assets across 57 properties.
JLL Income Property Trust is an institutionally managed, daily NAV REIT that brings to investors a growing portfolio of commercial real estate investments selected by an institutional investment management team and sponsored by one of the world’s leading real estate services firms.
KEY QUOTE:
“Richmond’s strong industrial market fundamentals and access to transit and logistics infrastructure make it a strategic and desirable region for us to invest. The property’s strong income profile, high occupancy, modern construction, and strategic location in this central East Coast market make it an ideal fit for our carefully curated industrial portfolio. After generating significant dry powder through dispositions in the fourth quarter of 2024 and investment of $100 million by our sponsor JLL, we are well positioned to take advantage of an attractive pipeline of new investments. As market pricing adjusts from the recent Fed interest rate cuts and we enter what looks to be a new market cycle for real estate, we are optimistic about core real estate’s long-term performance.”
- Allan Swaringen, President and CEO of JLL Income Property Trust
