JLL Income Property Trust has significantly expanded its robust real estate portfolio with the strategic acquisition of Glendale Distribution Center, a state-of-the-art Class A industrial warehouse facility located in Glendale, Arizona, for approximately $140 million. This substantial real estate investment underscores the REIT’s commitment to high-quality, income-producing assets within the thriving industrial real estate sector, particularly in key distribution hubs.
The newly acquired Glendale Distribution Center encompasses an expansive 1 million square feet and boasts 100% occupancy, fully leased to a single, globally recognized sportswear manufacturer and distributor with an exceptional credit profile. Constructed in 2023, the facility is equipped with cutting-edge commercial property features, including impressive 40-foot clear heights, spacious truck courts, advanced fire protection systems, energy-efficient LED lighting, and superior power capacity, optimizing it for modern warehousing operations.
The long-term lease, extending over 10 years, includes favorable annual rent escalations of 3.25%, providing a stable and predictable income stream for JLL Income Property Trust. This long-term commitment from a strong tenant highlights the asset’s defensive characteristics and its potential for consistent returns, aligning perfectly with the REIT’s investment philosophy focused on resilient portfolio performance.
A key strategic advantage of the Glendale Distribution Center is its location within a special Foreign Trade Zone (FTZ) in Phoenix, AZ. This designation enables the tenant to manage point-of-sale and inventory processes more efficiently, enhancing operational logistics. Furthermore, the property benefits from its direct proximity to major transportation infrastructure, including an interchange off Loop 303 and less than 10 miles from Interstate 10, crucial for effective supply chain management.
The Phoenix, AZ market is recognized by industry experts like CBRE as one of the fastest-growing industrial markets, evolving into a booming hub for manufacturing and distribution. This robust market environment continues to attract substantial industrial tenants, driven by shifting trade policies that encourage reshoring and nearshoring trends, further solidifying the long-term value proposition of this industrial real estate acquisition.
Allan Swaringen, President and CEO of JLL Income Property Trust, emphasized the strategic importance of this acquisition, noting that “Glendale Distribution Center is strategically located in a thriving industrial area, making it an attractive investment for us.” He further elaborated on the strong fundamentals of the industrial sector driving stable demand, especially in areas near major distribution hubs, reinforcing the strategic alignment of this asset acquisition.
Industrial real estate remains a high-conviction sector for JLL Income Property Trust, comprising 33% of its total portfolio as of Q1 2025, with approximately $2.2 billion in assets across 58 industrial properties. With significant “dry powder” from recent strategic dispositions, the trust is poised for further high-quality real estate investment opportunities that align with its disciplined acquisition strategy, continuing to build a diversified portfolio of core real estate investments.
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