New York Real Estate Journal

Jones Lang LaSalle Income Property Trust complete 560,000 s/f warehouse acquisition

August 26, 2013 - Brokerage
Jones Lang LaSalle Income Property Trust, Inc., has completed the acquisition of Suwanee Distribution Center, a warehouse property located in Northeast Atlanta. The recently constructed 560,000 s/f Suwanee Distribution Center is 100% leased to and serves as the national headquarters for Mitsubishi Electric & Electronics USA. The lease is for a period of ten years and runs through July 2023. The Company estimates the capitalization rate at 5.8% based on a purchase price of approximately $38 million. The Atlanta area is among the top three distribution hubs in the eastern U.S with excellent accessibility to major interstate highways, rail and Hartsfield-Jackson Atlanta International Airport. In addition, Atlanta ranks fourth nationally in the number of Fortune 500 companies headquartered within city boundaries. This recently completed, LEED certified distribution center is well located in a desirable institutional market with convenient freeway access and close proximity to downtown Atlanta and executive housing. "This investment exemplifies our strategy of acquiring higher-quality properties leased long-term to creditworthy tenants within our targeted warehouse markets," said Allan Swaringen, president and CEO of Jones Lang LaSalle Income Property Trust. "The Suwanee Distribution Center is leased through July 2023 with built-in rent escalations which provides a steady and growing income stream and fits well with the Company's investment objectives of acquiring core, income-oriented assets." Jones Lang LaSalle Income Property Trust is a non-listed, daily valuation perpetual life real estate investment trust (REIT) that gives investors access to a growing portfolio of commercial real estate investments selected by an institutional investment management team and backed by one of the world's leading real estate services firms.