JLL Earnings Property Belief expanded its industrial holdings with the acquisition of Louisville Logistics Middle, a 1 million-square-foot, newly constructed Class A industrial property within the South Louisville, Ky., industrial submarket for about $82 million.
Core5 Industrial Companions was the property’s vendor, in keeping with CommercialEdge knowledge.
Louisville Logistics Middle. Picture courtesy of JLL Earnings Property Belief
Situated at 5071 Preston Freeway in Shepherdsville, Ky., the cross dock distribution facility with 40-foot clear heights was accomplished in 2022. The asset is leased by 2032 to a nationally acknowledged, world transportation and logistics firm with greater than $100 billion in annual revenues and an S&P “A” credit standing. The lease comprises 2 p.c annual hire escalations, together with two 10-year renewal choices. The tenant has invested vital capital into tools and know-how personalized for his or her operations.
Central location
Louisville is situated on the confluence of a number of main highways permitting distribution to greater than half the nation’s inhabitants inside a day’s drive. The market has entry to I-24, I-64, I-65, I-71 and I-75. The property can also be inside 20 miles of main distribution hubs together with UPS air and floor hubs and Louisville Worldwide Airport.
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Allan Swaringen, president & CEO of JLL Earnings Property Belief, stated in a ready assertion the central geographic location, irreplaceable transportation infrastructure and powerful interstate freeway entry make Louisville a fascinating and strategic location for each regional and nationwide logistics. He famous the asset’s new development, vital enhancements by the tenant and 10-year lease to an investment-grade Fortune 100 firm made the property a sexy addition to the REIT’s warehouse portfolio.
Swaringen added the pricing on the asset was almost 150 foundation factors improved over advertising and marketing pricing 18 months in the past. He stated market situations like that ought to current some distinctive alternatives for traders like JLL IPT which have entry to capital.
Rising portfolio
JLL IPT, which owns and manages a portfolio of top quality, income-producing residential, industrial, grocery-anchored retail, health-care and workplace properties all through the U.S., makes use of a research-led technique for its industrial offers specializing in property with main entry to vital distribution hubs and transportation infrastructure. This newest acquisition brings JLL IPT’s combination industrial allocation to almost $2.2 billion, or 32 p.c of its portfolio, throughout 59 properties in 13 focused warehouse markets.
In February 2021, JLL IPT paid $95 million for one more 1 million-square-foot, Class A industrial asset within the South Louisville submarket. The property at 170 Clermont Highway has a long-term lease with McKesson Corp. and was bought by Core5 Industrial Companions, in keeping with Bullitt County data.
JLL IPT acquired Northeast Atlanta Distribution Middle, a Class A, 485,000-square-foot industrial property in Jefferson, Ga., for about $54 million in April 2022. The asset within the Northeast Atlanta submarket is leased to a sole tenant.
