JLL Income Property Trust acquires Creekview Crossing for $61m to bolster residential portfolio

In a significant move within the real estate sector, JLL Income Property Trust, a daily NAV REIT listed on NASDAQ (ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) with a portfolio equity and debt investment totaling approximately $7 billion, announced the strategic acquisition of Creekview Crossing. This class-A, 183-unit apartment community, nestled in the affluent suburb of Sherwood, OR, near Portland, was acquired for an estimated $61 million. This transaction includes the assumption of an existing $26 million mortgage loan, notable for its below-market interest rate of 3.09%.

Creekview Crossing’s acquisition is a testament to JLL Income Property Trust’s confidence in the residential sector, which is viewed as a high-conviction property sector capable of producing inflation-hedging rental growth. Allan Swaringen, President and CEO of JLL Income Property Trust, highlighted the acquisition’s alignment with the Trust’s investment strategy, emphasizing Creekview Crossing’s attractive location and the barriers to entry for similar developments in the area. This acquisition contributes to JLL’s substantial residential portfolio, which now exceeds $2.7 billion across apartment communities and single-family rentals.

Swaringen pointed out the attractive investing environment, noting that despite strong real estate fundamentals, current valuations offer appealing entry points that promise long-term portfolio value. This perspective suggests a strategic anticipation of the start of a new market cycle, underpinning the decision to invest in Creekview Crossing.

Constructed in 2009, Creekview Crossing offers residents high-quality garden-style and townhome living options, along with premium amenities. Its location in Sherwood positions it within a vibrant economic ecosystem, supported by sectors like advanced manufacturing, healthcare, and business services. The area’s limited rental options, coupled with significant population growth and the high ranking of the Sherwood School District, further enhance Creekview Crossing’s attractiveness.

Swaringen also highlighted the Trust’s unique UPREIT structure, which facilitated the acquisition by allowing a portion of the selling group to exchange property interests for operating partnership interests. This arrangement benefits sellers with a tax-efficient sale and long-term estate planning advantages while enabling JLL Income Property Trust to strategically expand its portfolio with reduced cash outlay.

JLL Income Property Trust’s acquisition of Creekview Crossing underscores a well-timed, strategic investment that leverages favorable market conditions and demographic trends. This move not only diversifies the Trust’s portfolio but also positions it advantageously for future growth in the residential sector. By capitalizing on the current market dynamics and employing a forward-thinking approach to portfolio management, JLL Income Property Trust demonstrates a robust investment strategy that could serve as a model for institutional real estate investment in today’s economic climate.

The acquisition of Creekview Crossing marks a significant milestone for JLL Income Property Trust, further solidifying its presence in the residential real estate market. As the Trust continues to navigate the evolving real estate landscape, its strategic investments and diversified portfolio underscore a commitment to delivering stable and growing income for its stockholders.