JLL Income Property Trust, an institutionally-managed daily NAV REIT with approximately $7 billion in portfolio equity and debt investments, announced the sale of Presley Uptown, an upscale apartment community in downtown Charlotte, North Carolina at an attractive premium to its initial acquisition price when it was acquired in 2019.
Presley Uptown, a 230-unit multifamily property situated in the heart of Charlotte’s central business district, provides residents access to the city’s top lifestyle amenities and walkability to a rapidly growing downtown employment base. JLL Income Property Trust’s sale realized an attractive leveraged internal rate of return during its four-year hold period and sold within one percent of its most recent independently determined appraised value. Further, as it looks to increase its allocation to higher yielding private debt, this sale recycles equity that will be redeployed into its growing senior secured mortgage portfolio.
“Presley Uptown proved to be a fantastic investment for us”, said Allan Swaringen, President and CEO of JLL Income Property Trust. “It’s assumable in-place fixed rate debt, along with the longer-term outlook for the Charlotte market, made it a highly sought after investment. Harvesting gains for our stockholders and redeploying sales proceeds at a time when market opportunities present higher risk adjusted-return investments has been a tenet of our core investment thesis for eleven years now.”
Swaringen further commented, “As active managers of our portfolio, since 2013 we have sold properties every year – in the aggregate, over $1 billion in dispositions across 46 properties. To further validate our independent, quarterly appraisal-based valuation methodology – an institutional approach quite different from competitors in the NAV REIT industry – all of those arms-length dispositions closed at a price within 2% of the investment’s most recent third-party appraisal. We believe this should give investors confidence in our daily NAV – which also does not include a premium for marking debt to market even though we have more than $2.3 billion of fixed or swapped-to-fixed below market debt.”
Cushman & Wakefield’s Sunbelt Multifamily Advisory Group advised JLL Income Property Trust on the sale of Presley Uptown. “I’d like to thank Michael Saclarides and the team from Cushman & Wakefield for their guidance and professionalism throughout this very well-run sales process,” commented Swaringen. “Institutional sales volumes are off more than 60% this year, both nationally and in the Charlotte market. Cushman’s expertise in this market clearly aided us in achieving our business objectives.”
JLL Income Property Trust’s allocation to residential assets following this disposition remains substantial. At $2.9 billion, residential investments – across 25 apartment communities and 4,400 single-family rental homes – account for 44% of Income Property Trust’s overall portfolio. Other property sector allocations include: $2.1 billion across 59 industrial/warehouse assets accounting for a 32% allocation, $790 million across 22 grocery-anchored shopping centers accounting for a 12% allocation, $620 million across 23 healthcare properties accounting for a 9% allocation, and $220 million across 3 office buildings accounting for a 3% allocation.