JLL Income Property Trust Acquires Trophy Office Building in Portland, Oregon

CHICAGO, IL--(Marketwired - Jul 7, 2016) - JLL Income Property Trust, an institutionally-managed, non-listed, daily valued perpetual life REIT (NASDAQ: ZIPTAX) (NASDAQ: ZIPTMX) (NASDAQ: ZIPIAX) (NASDAQ: ZIPIMX), today announced the acquisition of Pioneer Tower, a 17-story, multi-tenant, Class A office building in the heart of Portland's central business district. Set atop Portland's leading retail destination, Pioneer Tower offers a Class A office experience within an unparalleled mixed-use urban environment with direct access to Pioneer Place, Portland's number one shopping destination while also offering convenient access to its Transit Mall, the city's nexus of light rail public transportation systems. Pioneer Tower is 95% leased to a diverse roster of professional service tenants whose average tenure of occupancy is over fourteen years. The purchase price was approximately $122 million with an estimated capitalization rate based on purchase price of 5.0 percent.

Pioneer Tower is located at the intersection of Portland's burgeoning technology triangle (home to Google, Salesforce, eBay, Airbnb and TripWire) and high-end retail core (stores including Apple, Nike, Louis Vuitton, H&M and Tiffany & Co.). The Portland office market has been boosted by a steady migration of tech firms with further growth expected as it offers a lower cost option for employees, attracts a highly educated workforce and is geographically accessible to larger tech centers in the Bay Area and Seattle. In addition to Portland's low unemployment rate of 4.3 percent, Bloomberg recently tabbed Oregon as the best performing economy in the U.S. based on its strong employment outlook, affordability of housing and growing personal incomes.

"While our investment strategy has led us to underweight our allocation to office properties," noted Allan Swaringen, President and CEO of JLL Income Property Trust, "the opportunities at Pioneer Tower are very compelling. Portland is currently exhibiting a low direct vacancy rate of 6.7 percent, has maintained a lower than 10 percent vacancy rate for the past ten years and is one of LaSalle's target office markets. Our Research and Strategy team has promoted its 'DTU' theme for identifying higher quality, core urban investments -- Demographics, Technology and Urbanization -- and all of those factors intersect at Pioneer Tower, along with the opportunity to invest at nearly a 10 percent discount to replacement cost."