JLL Income Property Trust Fully Subscribes $197 Million Diversified DST Spanning Industrial, Healthcare and Retail
JLL Income Property Trust has fully subscribed JLLX Diversified 11, DST, a $197 million Delaware Statutory Trust structured to allow Section 1031 exchange investors to reinvest proceeds from the sale of appreciated real estate on a tax-deferred basis, the firm announced Sept. 3.
The program encompasses 12 institutional-quality properties spread across three property sectors: a seven-building industrial portfolio in Chicago's O'Hare submarket, four healthcare buildings across Florida, Massachusetts, Kansas and Missouri, and a grocery-anchored retail shopping center in Las Vegas. JLL Income Property Trust, a daily NAV, non-traded REIT listed on NASDAQ (ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), holds approximately $7.0 billion in portfolio equity and debt investments.
Portfolio Composition and Sector Diversification
The industrial component consists of seven buildings totaling 646,000 square feet near Chicago O'Hare International Airport. The portfolio was originally acquired by JLL Income Property Trust at approximately $71.5 million — roughly $111 per square foot — and is leased to approximately 14 tenants across a range of industries. The buildings were constructed between 1985 and 1989. Chicago represents the second-largest industrial market in the United States, with approximately 1.2 billion square feet of industrial stock, and the O'Hare submarket benefits from proximity to major transportation infrastructure including the airport and regional highway networks.
The healthcare allocation comprises four buildings totaling 83,000 square feet located across Florida, Massachusetts, Kansas and Missouri, providing geographic diversification across Sunbelt, Midwest and Northeast markets. The outpatient medical sector has seen sustained demand as health systems and providers continue to shift care delivery toward lower-cost ambulatory settings.
The retail component is a 49,000-square-foot grocery-anchored shopping center in Las Vegas, Nevada. Grocery-anchored retail has been a consistent allocation within JLL Income Property Trust's broader portfolio strategy, representing a segment characterized by daily-needs tenancy and lower exposure to e-commerce substitution relative to other retail formats. Las Vegas has experienced population and household formation growth in recent years, supporting demand for essential retail.
Executives Cite Sector Fundamentals
"Industrial, healthcare, and grocery-anchored retail remain three of the most fundamentally sound property sectors in real estate," said Allan Swaringen, President and CEO of JLL Income Property Trust. "JLLX Diversified 11, DST provides investors with durable income streams supported by strong tenant demand, favorable demographic trends, and attractive market fundamentals. This program exemplifies our commitment to delivering diversified, income-stable real estate investments within a tax-advantaged structure."
Drew Dornbusch, Head of JLL Exchange, said the offering is the platform's most diversified program to date. "The level of demand we continue to see underscores the value our platform provides to 1031 investors seeking institutional-grade real estate with meaningful tax and estate planning benefits," Dornbusch said.
JLL Exchange Platform Milestones
JLL Exchange, the DST platform operated by JLL Income Property Trust, launched in 2019 and has since raised more than $2.5 billion across 30 DST offerings. The platform targets property owners seeking to maintain real estate allocations in a tax-efficient manner following asset sales. To date, JLL Income Property Trust has completed 20 full-cycle UPREIT transactions totaling $1.5 billion, through which DST investors convert their beneficial interests into operating partnership units of the REIT.
JLL Income Property Trust is sponsored by LaSalle Investment Management, a subsidiary of JLL that manages approximately $86.8 billion of assets in private and public real estate equity and debt investments globally as of the first quarter of 2026.
Sources
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