JLL Income Property Trust Buys Phoenix-Area Distribution Center for $91M
- Mar 02, 2021
JLL Income Property Trust has purchased Southeast Phoenix Distribution Center, a Class A property located in the submarket of Chandler, Ariz., for $91 million.
The asset comprises 474,000 square feet across four buildings and was completed in 2019. The property offers state-of-the-art features such as spaces ranging from 20,000 to 135,000 square feet, ESFR sprinkler systems, full concrete truck courts with fencing, 32-foot clear heights and grade and dock-high doors.
The distribution center is currently 96 percent leased with an average weighted lease term of more than eight years, according to a prepared statement from Allan Swaringen, president & CEO of JLL Income Property Trust. The asset is conveniently located to the Interstate 10 and Loop 202 freeways, as well as 15 minutes from Sky Harbor International Airport and 20 minutes from downtown.
Chandler is named as one of the top warehouse markets within the greater Phoenix metroplex. The area is a recommended industrial overweight market because of the strong returns and how much demand has outweighed supply over the past decade, according to LaSalle Research & Strategy’s Core Target Market Ranking.
“Our goal is to drive long-term, stable returns for our shareholders, and the one of the best ways we can achieve that is by investing in winning property types that have a clear path of forward looking success,” Swaringen told Commercial Property Executive. “Industrial remains a strong property type, and we expect that we will soon clear the $1 billion mark for our industrial portfolio as we continue to strategically invest in the sector.”
JLL Income Property Trust now has more than $3.5 billion in portfolio assets and 85 properties. This purchase marks the company’s second in this market. Back in December 2019, the firm acquired Chandler Distribution Center for $31 million. More recently, the firm picked up a 147,000-square-foot purpose-built life science facility in Florham Park, N.J., for $46.6 million.