JLL Income Property Trust Closes $68.5 Million Mortgage on Whitestown Distribution Center IV Near Indianapolis
JLL Income Property Trust, an institutionally managed, daily NAV REIT, announced Oct. 7 that it closed a $68.5 million mortgage loan secured by Whitestown Distribution Center IV, a Class A distribution center of approximately 1.1 million square feet in the Northwest submarket of Indianapolis in Whitestown, Indiana. The loan has a seven-year term and an interest rate of 5.54%.
The firm said the transaction supports its strategy of including a modest amount of fixed-rate leverage on specific properties in its portfolio to enhance point-forward returns. JLL Income Property Trust reported approximately $6.9 billion in portfolio equity and debt investments at the time of the announcement.
JLL Income Property Trust Financing Terms
The $68.5 million mortgage carries a fixed rate of 5.54% over a seven-year term. Based on the facility's approximately 1.1 million square feet, the loan equates to roughly $62 per square foot. That figure is a per-square-foot measure and not a loan-to-value ratio.
JLL Income Property Trust's stated leverage framework targets a company leverage ratio of approximately 30% to 50%. The company reported a 32% leverage ratio at Dec. 31, 2025. The firm announced a $49 million financing on a Louisville industrial property earlier in 2026, which it described as part of an effort to increase accretive leverage and enhance point-forward returns.
Property Details: Whitestown Distribution Center IV
The facility is 100% leased to a single tenant and was constructed in 2024 as the tenant's largest North America redistribution center, servicing eight regional centers. The property was added to the JLL Income Property Trust portfolio in July 2026.
The building features LED lighting, ESFR sprinklers, 135-foot to 185-foot truck courts, full dock packages including hydraulic levelers, and 40-foot clear heights. The company describes the property as a newly built industrial asset in an infill location.
Indianapolis Industrial Market Context
The company's announcement characterizes Indianapolis as one of the country's major industrial markets, citing its location in the center of the U.S., extensive transportation systems, a deep labor pool and a business-friendly environment. The region is home to the second-largest FedEx hub nationwide, as well as distribution tenants including Amazon, Home Depot, DHL and Coca-Cola.
Whitestown sits within the Northwest Indianapolis logistics corridor. Large-format distribution facilities of this size are typically sought by third-party logistics, retail, manufacturing and e-commerce users.
Leverage Strategy and Debt Market Conditions
"As interest rates have moved higher and debt capital markets remain open but selective, we are seeing opportunities to include disciplined, accretive leverage on high-quality properties as a component of our business plan to drive positive performance. This leverage on a newly built industrial property in an infill location with strong demand drivers should provide the portfolio with durable cash flow for our investors," said Allan Swaringen, President and CEO of JLL Income Property Trust.
A seven-year fixed-rate loan provides interest-rate certainty and allows the owner to place debt on an asset without selling it. The benefit to returns depends on the property's income producing a yield above the effective cost of financing.
Industrial Allocation in the JLL Income Property Trust Portfolio
As of Sept. 30, 2026, industrial investments made up the largest share of the $6.9 billion portfolio at 40%, with approximately $2.7 billion in assets across 66 industrial properties, according to the company. The firm's portfolio also includes residential, grocery-anchored retail, healthcare and office properties in the United States, and it expects to further diversify over time, including on a global basis.
JLL Income Property Trust is sponsored by LaSalle Investment Management, a subsidiary of JLL. LaSalle manages approximately $86.8 billion of assets in private and public real estate equity and debt investments, with a client base that includes pension funds, insurance companies, governments, corporations, endowments and private individuals.
Outlook
The Whitestown financing follows the Louisville industrial loan earlier this year, indicating a pattern of selectively adding property-level debt to stabilized industrial assets. With the company's reported leverage ratio below the upper end of its stated target range, the framework leaves room for additional borrowing within its strategy.
Sources
- JLL Income Property Trust press release: https://jllipt.com/resources/news/press-release/jll-income-property-trust-closes-financing-on-indianapolis-industrial-facility
- PR Newswire: https://www.prnewswire.com/news-releases/jll-income-property-trust-closes-financing-on-indianapolis-industrial-facility-302901402.html