JLL Income Property Trust has completed a significant acquisition in the Richmond, VA area with its latest addition, the Richmond Distribution Center, a state-of-the-art Class A industrial building purchased for approximately $40.7 million. This strategic investment was announced on March 17, 2025, and marks another step in the firm’s ongoing commitment to growing its extensive real estate portfolio, which is valued at around $6.6 billion.
Spanning approximately 280,000 square feet, the Richmond Distribution Center is currently fully occupied by two high-quality international tenants. The leases associated with the property have an impressive weighted average lease term of 8.4 years, boasting annual rent escalations exceeding 3%, which provides a robust income profile for the trust. Built in 2022, the facility includes modern specifications, such as a 200-foot truck court area, 32-foot clear heights, ample truck storage spaces, and refrigerated cold storage, catering to contemporary logistics needs.
Strategically located just two miles from Richmond International Airport and eight miles from major highways like the I-95, the Richmond Distribution Center offers convenient access to vital transport links that serve the Eastern Seaboard. Additionally, it is located less than two hours from the Port of Virginia, which is the third largest port on the East Coast. This central positioning is particularly attractive to potential tenants and is indicative of an upward trend in the Richmond area’s industrial market.
The Richmond market has shown consistent tenant demand and low vacancy rates, recording an impressive 94% increase in asking rents since 2015. These market dynamics contribute to making the Richmond Distribution Center a highly desirable asset for JLL Income Property Trust’s portfolio, aligning with its research-led strategy focusing on acquiring properties that provide access to critical hubs for distribution and transportation infrastructure.
“Richmond’s strong industrial market fundamentals and access to transit and logistics infrastructure make it a strategic and desirable region for us to invest,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “The property’s strong income profile, high occupancy, modern construction, and strategic location in this central East Coast market make it an ideal fit for our carefully curated industrial portfolio.”
The addition of the Richmond Distribution Center enhances JLL’s already significant presence in industrial real estate. As of the end of 2024, industrial investments represented 32% of the trust’s total portfolio, which consists of $6.6 billion in equity and debt investments spread across multiple asset classes. Importantly, $2.0 billion of this figure is specifically allocated to industrial assets across 57 properties.
The acquisition comes after JLL successfully generated significant capital through asset dispositions in the fourth quarter of 2024, along with an investment of $100 million from their sponsor, JLL. This dry powder puts the trust in a favorable position to capitalize on what they see as an appealing pipeline of new investment opportunities.
“As market pricing adjusts from the recent Fed interest rate cuts and we enter what looks to be a new market cycle for real estate, we are optimistic about core real estate’s long-term performance,” added Swaringen. This perspective reflects a broader industry sentiment as stakeholders adapt to shifting economic conditions that affect property values and leasing dynamics.
Furthermore, JLL Income Property Trust is not only focused on expanding its reach in industrial properties but is also aiming to diversify its portfolio over time, potentially even on a global scale. As a daily NAV REIT, it offers investors the opportunity to engage with a growing portfolio of high-quality commercial assets, which are selected through the lens of an institutional investment management team.
In summary, the acquisition of the Richmond Distribution Center underscores the competitive advantages of the Richmond market and JLL Income Property Trust’s strategic approach to enhancing its industrial portfolio. With modern facilities addressing current logistics demands, robust tenants, and optimal location, this investment is set to enrich the trust’s offerings for years to come.
