Press Release

JLL Income Property Trust Sells Seattle Warehouses at Record Price

June 8, 2021 — Chicago

Tremont

JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), with more than $3.7 billion in portfolio assets and 86 properties, announced the sale of a three-building industrial warehouse portfolio located in South Seattle. South Seattle Distribution Center was sold to Charlie’s Produce, one of the current tenants at the property for nearly $73 million. The 323,000 square foot, three-building portfolio was less than 80 percent leased and had a weighted average lease term of under two years with significant near-term lease rollover. JLL Income Property Trust’s sale at over $125 per square foot was near record pricing for an older vintage property in this market and realized a leveraged equity multiple of 2.6 times its initial investment made originally in 2013.

“While increasing our portfolio’s allocation to the industrial sector is one of our investment priorities, in this case, a sale to one of the property’s long-standing tenants provided well above target investment performance to our stockholders while also de-risking one of our largest near-term lease maturities. This sale also removed nearly $5.5 million in future capital expenditures required to re-tenant these buildings”, said Allan Swaringen, President and CEO of JLL Income Property Trust. “As a core, income-focused investor, sometimes harvesting gains and redeploying capital in properties and markets with more attractive risk-adjusted returns is prudent – even when we are selling out of a targeted overweight property sector,” noted Swaringen. “As a perpetual, open-end fund, investing across economic and real estate cycles requires active risk management and timely dispositions.”

Since JLL Income Property Trust’s inception in 2012, it has sold 40 properties generating proceeds of more than $820 million on an arms-length basis within plus or minus 2 percent of their most recent independently appraised value.

Rental rates for warehouse properties in South Seattle more than doubled since Income Property Trust’s acquisition. Further, as lease rates approached $1.00 per square foot per month in this in-fill market, larger tenants began to relocate for modern buildings and more affordable locations. Proceeds from the sale will be reinvested to further diversify JLL Income Property Trust’s portfolio, which today includes over $1 billion of industrial holdings in 38 buildings across 12 key markets, or approximately 30 percent of its $3.7 billion portfolio. Income Property Trust’s industrial portfolio has experienced exceptional leasing momentum over the last year. Most recently, JLL Income Property Trust acquired three industrial properties in key markets including Phoenix, Indianapolis and Dallas/Fort Worth.


About JLL Income Property Trust

Jones Lang LaSalle 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 apartment, industrial, office and grocery-anchored retail 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.

About LaSalle Investment Management

LaSalle Investment Management, Inc., a member of the JLL group and advisor to JLL Income Property Trust, is one of the world’s leading real estate investment managers with approximately $73.5 billion equity and debt investments under management (as of Q1 2021). LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open and closed-end funds, public securities and entity-level investments. LaSalle is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Inc. (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.

Forward Looking Statements

This press release may contain forward-looking statements with respect to JLL Income Property Trust. Forward-looking statements are statements that are not descriptions of historical facts and include statements regarding management’s intentions, beliefs, expectations, research, market analysis, plans or predictions of the future. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. Past performance is not indicative of future results and there can be no assurance that future dividends will be paid.