SAN MATEO, California – (BUSINESS WIRING) – Clarion Partners Real Estate Income Fund Inc. (CPREIF) provided a $ 14 million mezzanine loan to investment and development company SomeraRoad to refinance a 100% leased facility in downtown Memphis, Tennessee to a global logistics leader. Clarion expects the 193,000-square-foot Class A creative office building to continue to provide stable cash flow from a Fortune 100 investment-grade tenant headquartered in the Memphis market for over 47 years.
Clarion Partners, LLC (“Clarion Partners”), the leading real estate investment manager in the United States, is one of Franklin Templeton’s specialized investment managers.
The former Gibson USA guitar factory is located in the heart of the Beale Street entertainment district in Memphis. The hotel underwent over $ 50 million refurbishment, which was completed in early 2021 on an individual project. It was subsequently leased to a tenant on a long-term basis to give employees greater access to the vibrant amenities in downtown Memphis, including shopping, dining and entertainment. Employees have recently begun occupying premises as COVID restrictions have been eased.
“Memphis is an important transportation and logistics hub, and Memphis International Airport is the second busiest cargo hub in the world, ”said Rick Schaupp, Managing Director of Clarion Partners. “The newly refurbished space in the city’s entertainment district, leased to a high-profile renter with a historically strong foothold in Memphis, is also close to I-40, which provides reliable connections to the larger metro area. This is an incredible opportunity to invest in creative office space in the stable Sun Belt market. ”
CPREIF’s private real estate investment strategy includes investments in wholly owned assets, joint ventures and structured debt investments. This is the new fund’s second mezzanine investment and fourth real estate deal this year.
CPREIF is a non-diversified closed-end investment management company that continually offers its ordinary shares. The fund’s investment manager, Legg Mason Partners Fund Advisor, LLC, is an indirect wholly owned subsidiary of Franklin Resources, Inc. (hereinafter “Franklin Resources”), and the investment sub-advisor to the fund, Clarion Partners, is an indirect controlling subsidiary. Franklin Resources. In addition, the fund’s securities sub-advisor, Western Asset Management, LLC, is also an indirect wholly owned subsidiary of Franklin Resources. Printed copies of the fund’s full audited financial statements are available free of charge upon request. More information on CPREIF is available here…
About Clarion Partners
For nearly four decades, Clarion Partners has managed real estate on behalf of many of the largest and most renowned institutional investors in the world. Through CPREIF, individual investors can benefit from Clarion’s experience and track record. Its retail funds are managed with the same discipline as its institutional assets and with the same emphasis on creating value through impeccable execution.
Clarion Partners, headquartered in New York, has strategically located offices in the United States and Europe. With over $ 63 billion in real estate and debt assets under management, Clarion Partners offers over 500 institutional investors worldwide a wide range of real estate strategies based on a range of risk and return. Clarion Partners is an independent subsidiary of Franklin Templeton. More detailed information about the company is available on the website www.clarionpartners.com…
About Franklin Templeton
Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better results through investment management expertise, wealth management and technology solutions. Through its dedicated investment managers, the company offers extensive opportunities in the areas of equity, fixed income, multi-asset solutions and alternative solutions. With offices in over 30 countries and nearly 1,300 investment professionals, the California-based company has over 70 years of investment experience and over $ 1.5 trillion in assets under management as of June 30, 2021. For more information visit franklintempleton.com and subscribe to us LinkedIn, Twitter and Facebook…
The fund is newly established and has a limited history of operations. Investing in the Fund carries a significant risk. The Fund is intended primarily for long-term investors, and an investment in the Fund should be considered illiquid. Shareholders may not be able to sell their shares in the Fund at all or at a bargain price. Fixed income securities are associated with interest rate, credit, inflation and reinvestment risks. As interest rates rise, the value of fixed income securities falls. High-yield bonds have greater price volatility, illiquidity and the potential for default. The Fund’s investments are heavily focused on real estate investments and will therefore be subject to risks normally associated with real estate, including but not limited to local, state, national or international economic conditions; including market failures caused by regional problems, political turmoil, sovereign debt crises and other factors. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and rollover risks. The Fund and / or its subsidiaries use leverage that increases the volatility of investment returns and exposes the Fund to increased losses if the underlying fund’s investment falls in value. The Fund may use derivatives such as options and futures, which may be illiquid, may disproportionately increase losses and potentially have a large impact on the Fund’s performance.
The Fund should be viewed as a long-term investment as it is inherently illiquid and is only suitable for investors who may bear the risks associated with the Fund’s limited liquidity. Limited liquidity is provided to shareholders only through the Fund’s quarterly offers to repurchase no more than 5% of the Fund’s shares outstanding at net asset value. There is no guarantee that these buyouts will be made on schedule or at all. The shares will not be listed on the open exchange and the secondary market is not expected to develop.
Before investing, carefully consider the investment objectives, risks, fees and costs of the fund. You can find this and other information in each prospectus, or in the consolidated prospectus, if available, at www.leggmason.com… Please read carefully.
All investments carry risks, including loss of principal. Past performance is not a guarantee of future performance. Any information, statement or opinion set forth in this document is of a general nature, is not directed or based on the financial position or needs of any particular investor and does not represent and should not be construed as investment advice, a forecast of future events. , a guarantee of future results or a recommendation for any particular security strategy, investment or type of retirement account. Investors looking for financial advice on the appropriateness of investing in any securities or investment strategies should consult with their financial professional.
INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANKING WARRANTY | MAY LOSE VALUE
© 2021 Franklin Distributors, LLC, a member of FINRA, SIPC. Franklin Distributors, LLC, Clarion Partners, LLC and Legg Mason Partners Fund Advisor, LLC are all subsidiaries of Franklin Resources, Inc.