JLL Income Property Trust, an institutionally-managed daily NAV REIT with approximately $6.6 billion in portfolio equity and debt investments, announced the sale of 180 North Jefferson, a 28-story apartment community in downtown Chicago as part of its long-term strategy of reinvesting capital at opportunistic points in the market cycle.
180 North Jefferson, located in Chicago’s West Loop neighborhood, includes 274 fully renovated apartment units – along with upgraded common area amenities.
“We recently completed a renovation of all 274 units and significantly upgraded the tenant amenities making it a good time to capture those value enhancements through the sale of 180 North Jefferson,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “There remains strong institutional interest in higher quality multifamily properties and having completed our business plan for this investment over our nearly 8-year hold, this sale increases our available capital to reinvest in higher yielding properties that we believe will improve future cash flows and point forward returns. We have an attractive overweight to residential, today 42% of our portfolio. Harvesting this urban high-rise property frees up capital to pursue our strategic overweight to suburban, garden-style apartment communities in highly rated school districts – a proprietary, research-led investment theme that has guided our market selection more recently. Throughout our hold period, this investment maintained a high level of occupancy and generated significant net operating income for our fund.”
Swaringen further commented, “As active managers of our portfolio’s property sector weightings, since 2013 we have sold properties every year – in the aggregate approximately $1.1 billion in dispositions and 47 properties. To further validate our independent, appraisal-based valuation methodology – an institutional approach different from other NAV REIT offerings – all those arms-length dispositions closed at a price within 2% of the investments’ most recent third-party appraisal. 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 in fixed or swapped-to-fixed below current market debt.
JLL Income Property Trust was represented by CBRE, Inc. in the transaction. “John Jaeger, Justin Puppi and Jason Zyck’s local knowledge of the Chicago market was key in helping to successfully market the property, and we thank them for their assistance,” said Swaringen.
JLL Income Property Trust, Inc. (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) is a daily NAV REIT that owns and manages a diversified portfolio of high quality, income-producing residential, industrial, grocery-anchored retail, healthcare and office properties located in the United States. JLL Income Property Trust expects to further diversify its real estate portfolio over time, including on a global basis.
