The 1031 like-kind exchange market is expected to top $3 billion in originations in 2019, representing nine consecutive years of growth.

JLL says some of the benefits of the 1031 Like-Kind Exchange program include: JLL Income Property Trust's institutional investment management platform and track record; access to higher quality, larger and a more broadly diversified property portfolio; long-term investment solution for investors no longer wanting to actively manage real estate and lower fees than typically charged to individual investors accessing the traditional 1031 marketplace.

Through its operating partnership, JLL Income Property Trust will offer beneficial interests in DSTs as "like-kind" property to investors. Each DST will be governed by a trust agreement to be entered into among JLL Exchange, LaSalle Investment Management, the company's external advisor, the operating partnership, a Delaware resident trustee and investors of the DST, JLL explains.

Pursuant to each trust agreement, JLL Income Property Trust states that the operating partnership will retain a fair market value purchase option giving it the right, but not the obligation, to acquire the beneficial interests from the investors any time after two years from the closing of the applicable DST Offering in exchange for units of the operating partnership or cash. After a one-year holding period, investors who acquire OP Units generally have the right to redeem all or a portion of their OP Units for, at the company's sole discretion, shares of the company's common stock, cash or a combination of both.

LaSalle, as advisor to the program will be engaged to serve as the manager of each DST and will have primary responsibility for performing administrative actions in connection with the DST and any DST Property and generally has the discretion to determine when it is appropriate for a DST to sell a property, subject to the operating partnership's option. The operating partnership of JLL Income Property Trust will hold an option to acquire the DST property at a future date in connection with each DST offering.

If the operating partnership exercises its purchase option, DST investors will automatically exchange their DST interests for units of the JLL Income Property Trust Operating Partnership, thereby converting their investments in a single DST asset into fractional ownership interests in an institutional-quality, diversified, $3 billion, 75 property portfolio of commercial real estate.

Outside of the new 1031 exchange program, JLL Income Property Trust earlier this month reported it acquired Presley Uptown, a newly developed 230-unit, Class-A apartment community in the Uptown submarket of Charlotte, NC for approximately $55 million.