J
LL Income Property Trust, a daily NAV REIT with approximately $6.6 billion in portfolio equity and debt investments, has originated a $32 million senior, secured floating rate first mortgage loan on a newly constructed apartment community in north suburban Houston, Texas. The three-year loan carries an interest rate of 3% above SOFR, with a SOFR floor of 3.25%, and is projected to deliver an attractive yield of approximately 7% to 8%.

    This loan origination marks JLL Income Property Trust's surpassing of $130 million in its senior secured floating rate first mortgage portfolio. In a market environment where traditional real estate debt sources face balance sheet and legacy portfolio challenges, JLL Income Property Trust is capitalizing on the opportunity by originating real estate loans that complement and diversify its core property portfolio.

    The underlying collateral for this loan is a 231-unit apartment community located in the submarket of Tomball, TX. The market has experienced significant growth in population and commercial activity due to its proximity to major employers and an attractive base of residential amenities. Significant employers in the area include Exxon Mobil, Hewlett Packard, and University of Texas MD Anderson Cancer Center.

    JLL Income Property Trust's advisor, LaSalle Investment Management, has originated over $5 billion of real estate loans globally and has 20-plus years of experience in real estate debt investing across multiple economic cycles. Investing in residential properties located in top school districts is a key principle of LaSalle's investment strategy, as these locations have exhibited stronger historical rent growth and higher average occupancy.

    In related news, JLL, the Sponsor of JLL Income Property Trust, has fully funded its previously announced commitment and acquired $100 million of JLL Income Property Trust's common stock at the daily NAV offering price on January 2, 2025. This additional investment, along with recent property sales and expansion of institutional Delaware Statutory Trust offerings through JLL Exchange, has generated significant investing capacity at an opportune time in the current real estate recovery cycle.

    JLL Income Property Trust owns and manages a diversified portfolio of high-quality income-producing properties located in the United States. The company expects to further diversify its real estate portfolio over time, including on a global basis.