JLL Launches New Nontraded REIT Focused on Commercial Real Estate Debt
Jones Lang LaSalle (JLL) has launched a new nontraded real estate investment trust, JLL Property Finance Trust, focused primarily on commercial real estate debt. The perpetual Maryland-based REIT will originate and manage loans across various property types including multifamily, industrial, retail, self-storage, healthcare, and more. It may also invest in CMBS and CLOs. Shares are being offered through a blind pool basis without existing investments. The new REIT is managed by LaSalle Investment Management under an advisory agreement with JLL's parent company. The trust plans to operate between 60% and 80% leverage, targeting loan-to-value ratios of up to 75%. Redemption limits are set at 5% per quarter, with shares held less than a year redeemable at 95% NAV. The launch comes amid rising commercial real estate debt distress due to high interest rates. The CMBS special servicing rate reached its highest level since 2013 in August as borrowers face challenges refinancing older loans.
