JLL Income Property Trust, an open-ended US real estate investment trust (REIT), has acquired a class-A 183-unit apartment community located in the suburban Portland market of Sherwood, Oregon for $61m (€56m).
The $7bn NASDAQ-listed REIT said the purchase price of Creekview Crossing includes the assumption of an in-place $26m mortgage loan, which has an “attractive below-market interest rate of 3.09%”.
The investment lifts JLL Income Property Trust’s total residential allocation to more than $2.7bn, or 42% of the portfolio, comprising 28 apartment communities and more than 4,400 single-family rental homes, the company said.
The REIT’s overall portfolio includes income-producing residential, industrial, grocery-anchored retail, healthcare and office properties located in the US, JLL Income Property Trust said, adding that it expects to further diversify its real estate portfolio over time, including on a global basis.
Allan Swaringen, president and CEO of JLL Income Property Trust, said: “Supported by strong fundamentals and demographic tailwinds, the residential sector is one of our highest conviction property sectors, producing inflation-hedging rental growth that we believe will be a stable and growing source of income for our stockholders.
“Creekview Crossing’s desirable location in an affluent suburban area with high barriers to entry make this acquisition an outstanding addition to our already substantial residential portfolio allocation of more than $2.7bn of apartment communities and single-family rentals.”
Swaringen added that while property fundamentals in real estate remain strong, valuations are at a “more attractive entry point that should produce long-term value for our portfolio, as signs are pointing to the start of a new market cycle”.
“Our ability to provide customised outcomes for property sellers gives us a strong advantage as buyers in the current marketplace. Further, as an attractive borrower in this challenged lending environment, working through the assumption of this below-market loan should benefit our stockholders for the remaining 31-year life of the loan.”
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