Jones Lang LaSalle Income Property Trust Pays $25.5M for Charlotte Distribution Center
- Jul 11, 2014
By Eliza Theiss, Associate Editor
LaSalle Investment Management announced that Jones Lang LaSalle Income Property Trust Inc. has purchased the 346,500-square-foot Charlotte Distribution Center in Charlotte, N.C. for $25.5 million.
The REIT estimates a 6 percent capitalization rate based on the purchase price. The property is fully leased to Greenville, S.C.-based Michelin North America on 14-year term featuring 2.25 percent annual rental increased. According to the Charlotte Business Journal, Michelin signed the lease for the Twin Lakes Business Park property in September 2013, meaning that there’s still over 13 years left on its term. The warehouse was previously leased by Ingersoll Rand, which vacated in spring 2013. The property was previously owned by Beacon Partners who purchased it from California-based LLC Kendall-Charlotte for $11.4 million, as reported by the Charlotte Business Journal.
This newest purchase offers the Jones Lang LaSalle Income Property Trust stable cash flow, geographic diversification of the portfolio and increased exposure on the eastern seaboard. “Our strategy remains to further grow and diversify the portfolio in terms of tenant mix, property type and geographic location,” said President and CEO of Jones Lang LaSalle Income Property Trust Allan Swaringen.” The purchase of Charlotte Distribution Center has brought the REIT’s total portfolio value to over the $900 million benchmark. Of this, five high-quality core properties worth in excess of $135 million were acquired in first six months of 2014.
Jones Lang LaSalle Income Property Trust is an institutionally-managed, non-listed, daily valuated REIT.
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Image courtesy of Beacon Partners