By Jon Peterson
JLL Income Property Trust, a non-traded REIT advised by Chicago-based LaSalle Investment Management has acquired the 477,000 square foot Pinole Point industrial asset in Richmond for $77 million, according to sources aware of the transaction.
The seller of the property was San Francisco-based Prologis, which declined to comment on the sale when contacted for this story. The seller sold the property through two brokerage firms, who would not discuss any terms of the sale. The local firm was the Oakland office of Colliers International. This involved Greig Lagomarsino, executive vice president, and Todd Severson, senior vice president. Darla Longo of CBRE also participated in the transaction. She is a vice chairman with the company and works out of its Ontario office in Southern California.[contextly_sidebar id=”51NZUS8D4hwROzZJyL0HYpBTyrJ2N2ed”]The cap rate on the deal was approximately 4.5 percent, as stated by sources who were aware of the sale. This return would be based on the current net operating income in the asset.
The tenants in the property include Amazon and Williams-Sonoma Direct. The property covers around 80 acres of land at the intersection of Atlas Road and Giant Highway in the city of Richmond. The asset had originally been owned and developed by KTR Capital Partners, a real estate company that had acquired the land for the development in March of 2014. It went under the ownership of Prologis when the REIT acquired KTR Capital in 2015.
JLL Income Property Trust made the acquisition in Richmond as part of LaSalle’s $1.3 billion worth of acquisitions the real estate manager completed during the third quarter across the United States. The deal in Richmond was the only asset in the San Francisco Bay Area that was announced by the manager. The other announced transactions involved properties in Los Angeles, San Diego, Denver, two in Phoenix, Seattle, Atlanta, Portland, Minneapolis and Washington, D.C.
Year-to-date on a national scale, LaSalle has completed $2.1 billion worth of transactions. This compares to $1.6 billion over the same time period in 2015. The real estate manager continues to invest in properties that will benefit from evolving demographics in the regions of interest, technology and urbanization driven secular changes in the economy and the general real estate market.
“I am pleased with the overall pace and quality of our transactional activity through the third quarter. On the acquisition front, our team was characteristically prudent in their approach, having underwritten significant higher number of opportunities relative to the 13 that were closed during the quarter. We will continue to heed market signals and remain selective in both our investment and sale of assets that offer compelling risk-adjusted returns for our clients,” said Jason Kern, chief executive officer for LaSalle, in a prepared statement.