JLL Income Property Trust pays $137M for Indiana warehouse

AltsWire reports that JLL Income Property Trust, a daily-NAV nontraded REIT run by LaSalle Investment Management, has acquired Whitestown Distribution Center IV in Whitestown, Ind., for about $137 million. The 1.1 million-square-foot building, completed in 2024, is under a long-term lease to a single tenant that uses it as its largest North American redistribution center, feeding eight regional hubs. The property features 40-foot clear ceilings and truck courts spanning 135 to 185 feet, according to the company.

The purchase deepens the REIT's footprint in the Indianapolis area's Northwest submarket. In April, it paid about $60.3 million for 4337 Allpoints Drive, a 605,000-square-foot building in the same Whitestown Distribution Center portfolio, using cash on hand and a draw on its revolving credit line, AltsWire previously reported.

Industrial now accounts for 38% of the REIT's portfolio, roughly $2.5 billion spread across 64 properties as of June 30. The full book spans about $6.9 billion of equity and debt investments, covering 139 properties and nearly 2,440 single-family rental homes in 27 states.

President and CEO Allan Swaringen described the acquisition as an attractive addition, telling AltsWire that industrial has been the fund's best-performing segment and that fundamentals have held steady through three years of commercial real estate valuation corrections. He said the warehouse sector is starting to show signs of sustainable growth.

Second-quarter net income attributable to the company was $7.9 million, against a $2.9 million loss in the same period last year. The improvement drew heavily on property dispositions, including a $27 million gain from the May sale of an industrial building in Fremont, Calif. That gain alone exceeds the quarterly profit, so the rest of the portfolio lost about $19 million. First-half net income reached $24.8 million, turning around an $8.4 million loss a year earlier. Total assets stood near $5.5 billion on June 30.