JLL REIT Acquires 442K Center for $21M

CHICAGO—Jack Fraker, CBRE‘s managing director of the company’s Capital Markets Industrial Practice, recently told GlobeSt.com that demand for industrial commercial real estate has far outstripped the supply. “It’s something like a 4:1 or 5:1 imbalance. A lot of capital wants to be in real estate, but there aren’t a lot of available deals on the market. The competition is resulting in a downward pressure on cap rates.”   

Jones Lang LaSalle Income Property Trust, Inc., for example, just completed the acquisition of the 442,000-square-feet Joliet Distribution Center, a warehouse property at 3300-3500 Corporate Dr. in Joliet. The purchase price was approximately $21 million, company officials say. They estimate that, based on the purchase price, the property has a capitalization rate of approximately 6.3%. The center operates under a net-lease and two tenants occupy 100% of the space with a weighted average remaining lease of approximately six years.