Full cycle

JLLX Mason Mill, DST completed a Section 721 roll into JLL Income Property Trust on April 11, 2023

Investors' Delaware Statutory Trust (DST) interests were contributed to the acquiring REIT for operating-partnership units, one of three full-cycle transactions the REIT reported that day.

Published Updated

On April 11, 2023, JLL Income Property Trust reported completing a Section 721 UPREIT transaction covering the property held by JLLX Mason Mill, DST, with trust interests exchanged for operating-partnership units in the REIT. The release titles it as one of three full-cycle transactions the REIT completed by acquiring properties from its DST platform, as posted by the REIT.

The offering as filed:

Item

As filed

Trust

JLLX Mason Mill, DST

Sponsor

JLL Exchange (JLLX)

Asset class as filed

Other Real Estate

Exemption

506(b)

First Form D

November 19, 2020

Offering amount

$18,534,268

Minimum investment

$280,627

Disposition

Section 721 UPREIT roll

Disposition date

April 11, 2023

Hold period, first filing to disposition

2.4 years

That hold runs from the first filing, not from any individual investor's closing.

The two public accounts describe the structure differently. This trust holds its own CIK and filed its own Form D. The April 11, 2023 release treats the assets as a single program, JLLX Diversified I, DST, holding San Juan Medical Center and a distribution center it renders as Mason Hill Distribution Center; the REIT's property page names that property Mason Mill Distribution Center. The record does not describe how interests in the program were allocated between the two properties. For the offering terms this report relies on the Form D, the filed record of this trust; for the disposition it relies on the April 11, 2023 release, the only public account of the transaction.

What the release reports on the exit:

As reported for JLLX Diversified I, DST


Blended average annual income

5.0% across both properties combined, as reported by the sponsor in the April 11, 2023 release, not attributable solely to a single-asset Mason Mill trust

Average annualized return

Approximately 27% across both properties combined, as reported by the sponsor in the same April 11, 2023 release, not attributable to this trust alone

No value is disclosed for the April 2023 contribution of the property. The Form D names neither the property, the tenant, the debt, nor the distribution terms.

The dates and the structure of this one are documented; the economics of this trust alone are not.