JLL Acquires Phoenix Distribution Center for $91M
JLL Income Property Trust purchased the newly-constructed, 474,000-square-foot, Southeast Phoenix Distribution Center, which is 96% leased.
PHOENIX, AZ – JLL Income Property Trust has acquired a 474,000-square-foot newly-constructed, class A distribution center in Phoenix, AZ for $91 million.
The four-building asset, Southeast Phoenix Distribution Center, is located in Phoenix’s Chandler submarket, at the confluence of Interstate 10 and Loop 202 freeways.
“The broader industrial sector has proven to be resilient amid the pandemic and is on course to maintain its position as a winning property type for the foreseeable future,” states Allan Swaringen, president and CEO of JLL Income Property Trust. “At 96% leased and with an average weighted lease term of more than eight years, we believe Southeast Phoenix Distribution Center, which is located in the 14th largest industrial market in the U.S., fits well within our objectives.”
Constructed in 2019, the Southeast Phoenix Distribution Center features 32-foot ceiling heights, ESFR sprinkler systems, grade and dock-high doors, full concrete truck courts with fencing and tenant space that ranges from 20,000 square feet to 135,000 square feet.
The property is situated 20 minutes from downtown Phoenix and 15 minutes from Sky Harbor International Airport.
The recent acquisition represents JLL Income Property Trust’s second industrial investment within the Phoenix market. In December 2019, the REIT purchased the Chandler Distribution Center for $31 million.
Swaringen adds, “We remain bullish on the industrial sector as the demand drivers have been stronger than any other major property type and rent growth has exceeded expectations in many markets, including Phoenix, despite an active supply pipeline.”
The acquisition of the distribution center aligns with JLL Income Property Trust’s strategy to invest in institutional-quality industrial assets located near transportation hubs.
JLL Income Property Trust’s aggregate industrial allocation is nearly $980 million, representing 30% of its $3.5 billion diversified core real estate portfolio, which includes 38 industrial assets.