JLL Income Property Trust announced the sale of a Valencia industrial warehouse at a substantial premium to its acquisition price.
It was sold to the current tenant for $5.6 million, representing appreciation of 35% above the original purchase price.
This property was initially acquired in 2016 as part of a broader five-building warehouse portfolio in Valencia that JLL acquired as it was ramping up its allocation to the industrial property sector.
“This sale is a proof point in our thesis that investing in well-located, institutional-quality industrial properties is a winning formula despite uneven market conditions, and it is another clear indicator that real estate capital markets are open for business,” Allan Swaringen, president and CEO of JLL, said in a prepared statement. “On occasion, strong demand from certain tenants to own their own building also provides the added benefit of harvesting attractive gains on sale.”
At just over 31,000 square feet, this property is better suited for the owner/occupier market given its smaller footprint.
Proceeds from the sale are expected to be reinvested to further diversify JLL’s portfolio, which includes $780 million of industrial holdings in 34 buildings across 11 key markets, representing an approximate 26% allocation within JLL Income Property Trust’s $3.1 billion portfolio.