JLL Income Property Trust Completes 20th Full-Cycle UPREIT, Reaching $1.5 Billion

From: AltsWire
Author: Mari Nicholson
Date: August 18, 2026

JLL Income Property Trust has completed a full-cycle 721 UPREIT of the two-property portfolio owned by JLLX Diversified Portfolio III, a Delaware statutory trust syndicated through its JLL Exchange platform, which offers reinvestment opportunities to 1031 exchange investors. The transaction is the platform’s 20th full-cycle UPREIT completion. JLL Income Property Trust is an institutionally managed, daily net asset value real estate investment trust with approximately $6.9 billion in portfolio equity and debt investments, according to the company.

In a 721 UPREIT transaction, real estate can be exchanged on a tax-deferred basis for partnership interests in a REIT, which can give owners of the exchanged property greater diversification, current income, and appreciation.

JLLX Diversified Portfolio III, DST was syndicated between November 2023 and May 2024 as a two-property offering comprising one light industrial property and one medical outpatient building. The portfolio was 100% leased to two tenants, with a weighted-average lease term of 7.5 years, and gained $1.3 million in value over the hold period, according to the company. JLL Income Property Trust exercised its option to acquire the DST properties, completing the full-cycle transaction via a 721 UPREIT. Investors will receive operating units of JLL Income Property Trust equal to the value of the DST properties, adjusted for transaction costs, distributions, and reserves.

“JLL Exchange continues to provide innovative solutions to the historical challenges investors face with traditional 1031 products,” said Drew Dornbusch, head of JLL Exchange. “With JLL Income Property Trust’s UPREIT acquisition of these properties, we’ve demonstrated our ability to provide 1031 exchange investors with current income, capital preservation and ultimately, a tax-deferred interest in a diversified, institutional core real estate portfolio.”

“Delivering an income-focused, high-quality core diversified real estate fund to our DST investors through the UPREIT of these properties demonstrates the true benefits of our JLL Exchange program,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “These transactions confirm our ability to respond to market demand with another innovative tax-advantaged solution for the private wealth market.”

AltsWire reported on the offering’s original subscription in June 2024, when it closed as the $95 million JLLX Diversified III, DST, consisting of a medical outpatient building in Florham Park, N.J., leased to Summit Health Management, and a Class A industrial property in Durham, N.C., leased to KBI Biopharma.

Since its inception in 2019, JLL Exchange has provided exchange solutions for more than $2.5 billion of investors’ capital across 30 DST offerings, the company said. JLL Income Property Trust has completed 20 full-cycle UPREIT transactions totaling $1.5 billion to date – up from 10 transactions totaling $820 million as of the REIT’s last full-cycle UPREIT completion AltsWire covered, a three-DST transaction in April 2024.

JLL Income Property Trust is an institutionally managed, daily NAV REIT that invests in a portfolio of core real estate assets selected by an institutional investment management team.

Original Article: https://altswire.com/jll-income-property-trust-completes-20th-full-cycle-upreit-reaching-1-5-billion/