JLL Income Property Trust has sold a multi-tenant office building, 111 Sutter Street, in San Francisco for $227 million.The asset was the largest single property investment of the $2.7 billion portfolio.
“The iconic San Francisco office building has been a cornerstone of our portfolio since we launched JLL Income Property Trust in 2012,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “It has been one of our best performing investments over the last seven years. That said, in keeping with our core investment strategy, we’ve sold over $730 million and more than 30 properties, harvesting gains and reinvesting in properties and markets that we believe represent better risk-adjusted opportunities for our investors.” Swaringen further noted, “Recognizing we are later in the cycle, we believe it is essential to be a timely seller as well as a disciplined acquirer. In keeping with our de-risking portfolio strategy, we have been underweighting our allocation to office properties and focusing on property types that historically have required less ongoing capital investment and have generated more free cash flow from operations.”
Proceeds from the sale will be reinvested across a number of other properties and geographic markets further diversifying JLL Income Property Trust’s portfolio. “We have an attractive pipeline of potential new property investments spread across different property sectors and markets all better aligned with our core, income-oriented, lower volatility and lower leverage investment strategy,” commented Swaringen.