CLARION PARTNERS REAL ESTATE INCOME FUND (CPREIF) - Portfolio properties - Legg Mason
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CLARION PARTNERS REAL ESTATE INCOME FUND (CPREIF) Portfolio properties INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
ANKER HAUS
CHARLOTTE, NC
Investment overview1
Investment type Direct equity
Date of investment October 4, 2021
Purchase price at share $24.7 million
Ownership share 100%
Property overview
Property type Multifamily
Units 49
Investment summary Property description
• 49-unit, build-for-rent townhome community located in • Strategic location offering proximity to downtown,
the heart of Charlotte’s Plaza Midwood neighborhood, a lively restaurant and bar scene, and access to the
less than 4 miles to Downtown Charlotte. city’s growing healthcare industry.
• Differentiated multifamily product attractive to today’s • The “pocket neighborhood” design, modeled after
renters, who are constrained by inflated housing prices. an European village, is Charlotte’s first and will be hard
to replicate, particularly given the lack of available land
• The East Charlotte submarket exhibits impressive market sites in the submarket.
fundamentals, including resilient net migration, high
barriers to new supply, and strong employment growth. • Apartments are highly-amenitized and feature modern
finishes, with common amenities including a pool with
adjoining cabana, fitness center, grilling area, and dog park.
1
Source: Clarion Partners. As of October 7, 2021. This investment represents 11.9% of relative percentage of the holding of the entire portfolio (100%). Characteristics and holdings
weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. Not to be construed as a recommendation to purchase
or sell any security. There can be no assurance that any unrealized investment described herein will prove to be profitable. Please refer to the important disclosures at the end of
this presentation.
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
2
CONGRESS COMMONS
AUSTIN, TX
Investment overview2
Investment type Direct equity
Date of investment October 4, 2021
Purchase price at share $38.7 million
Ownership share 100%
Property overview
Property type Mixed use
Gross size 50,244 sf
Office 38,812 sf
Retail 11,432 sf
Investment summary Property description
• Mixed-use asset, located “Main and Main” along • Strategic infill location between I-35 and Loop 1
Downtown Austin’s iconic Congress Avenue. (MoPac Expressway), providing strong connectivity
to the larger metropolitan area.
• 100% leased to Accenture (S&P: AA-), One Medical,
and three service-oriented retail tenants with • Excellent walkability gives tenants access to
a weighted average lease term of 7.51 years as of a renowned amenity base of dining, entertainment,
August 2021, providing a stable, long-term cash flow. and retail options.
• Exposure to a high growth southern market, which is • The asset’s interior features high-end, Class A finishes
poised for further expansion due to the relatively affordable for both the creative office and retail spaces.
cost of living, robust job market, talented labor pool, and
the State of Texas’ business-friendly environment.
2
Source: Clarion Partners. As of October 7, 2021. This investment represents 18.2% of relative percentage of the holding of the entire portfolio (100%). Characteristics and holdings
weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. Not to be construed as a recommendation to purchase
or sell any security. There can be no assurance that any unrealized investment described herein will prove to be profitable. Please refer to the important disclosures at the end of
this presentation.
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
3
3828 CIVIC CENTER
NORTH LAS VEGAS, NV
Investment overview3
Investment type Direct equity
Date of investment October 4, 2021
Purchase price at share $7.1 million
Ownership share 100%
Property overview
Property type Warehouse
Square footage 39,348 sf
Investment summary Property description
• Sale-leaseback agreement with a well-capitalized • The building offers Class A specifications and
private company to lease 50% of the Class A, mid-bay ample parking.
industrial building.
• Situated less than two miles east of I-15 and
• The Las Vegas industrial market continues to exhibit approximately 14 miles north of McCarren International
strong fundamentals with low vacancy rates, high rent Airport, the site offers strong connectivity to the larger
growth, and strong net absorption. metro area and potential for next-day delivery to over
60 million people.
• Adds Fund exposure to the West region and increases
exposure to the highly desirable industrial sector. • The property is easily reconfigured for either a single-
or multi-tenant use, differentiating the asset in a supply-
constrained market where there is limited competing
product offering suites in the 10K sf to 20K sf range.
3
Source: Clarion Partners. As of October 7, 2021. This investment represents 3.4% of relative percentage of the holding of the entire portfolio (100%). Characteristics and holdings
weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. Not to be construed as a recommendation to purchase
or sell any security. There can be no assurance that any unrealized investment described herein will prove to be profitable. Please refer to the important disclosures at the end of
this presentation
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
4
MEMPHIS LOGISTICS HQ
MEMPHIS, TN
Investment overview4
Investment type Structured debt
Date of investment August 12, 2021
Purchase price at share $14.0 million
Ownership share 100%
Property overview
Property type Creative office
Square footage 193,387 sf
Investment summary Property description
• Recapitalization of a recently renovated Class A • Strategic location in the heart of Beale Street’s
creative office. entertainment district, offering employees a sought
after live-work-play dynamic.
• 100% NNN leased through September 2035 to an
investment grade, global logistics tenant. • Proximate to I-40, providing strong connectivity to the
larger metro area.
• Brought to Clarion off market through relationship with
the senior lender. • Renovated in 2020 as a build-to-suit for the tenant, who
contributed an additional ~$20 million for the build out
of furnishings, fixtures, and equipment.
4
Source: Clarion Partners. As of October 7, 2021. This investment represents 6.7% of relative percentage of the holding of the entire portfolio (100%). Characteristics and holdings
weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. There can be no assurance that any unrealized
investment described herein will prove to be profitable. Not to be construed as a recommendation to purchase or sell any security.
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
5
MOSAIC AT LARGO STATION
LARGO, MD
Investment overview5
Investment type Joint Venture
Date of investment May 26, 2021
Purchase price at share $59.4 million
Ownership share 92.5%
Property overview
Property type Multifamily Apartment
Units 242
Investment summary Property description
• Class A, four-story, 242-unit mid-rise multifamily • Strategic location adjacent to I-495 and the WMATA
community well located in a Washington, DC suburb. Blue and Silver Lines, providing convenient access to
downtown Washington, DC (~14 miles) and the larger
• Value add strategy with planned upgrades to the metro area.
mailroom, hallways and stairwells and a new pet station
and dog park. • Walkable to employment, retail, and entertainment
centers, including the University of Maryland’s Capital
• Traditionally recession resistant sector with strong Region Medical Center.
submarket performance through market cycles.
• Amenities include a two story-clubroom, fitness center,
• Experienced joint venture partner with significant local outdoor swimming pool, grilling area, package service and
market knowledge and development experience. a six-story, controlled-access structured parking deck.
5
Source: Clarion Partners. As of October 7, 2021. This investment represents 15.1% of relative percentage of the holding of the entire portfolio (100%). Characteristics and holdings
weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. There can be no assurance that any unrealized
investment described herein will prove to be profitable. Not to be construed as a recommendation to purchase or sell any security.
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
6
55 MESSINA DRIVE
BRAINTREE, MA
Investment overview6
Investment type Direct equity
Date of investment April 23, 2021
Purchase price at share $17.5 million
Ownership share 100%
Property overview
Property type Life Science
Square footage 58,935 sf
Investment summary Property description
• 100% triple net leased to Zimmer Biomet (S&P: BBB as • This newly renovated biopharmaceutical manufacturing
at time of purchase) thru April 2034, limiting rollover risk facility, with over $30 million in tenant investment, is
and providing for a durable cash flow stream. located within Boston’s Life Sciences Corridor, a major
regional hub for the life science and biotech industries.
• Exposure to the Good Manufacturing Practices (GMP)
sector, which appears poised for expansion throughout • The site is conveniently located near major interstate
Boston as companies focus on access to their supply highways (I-93 and I-95) and to Boston’s mass transit
chain and a highly educated labor pool. network (MBTA Red Line).
• Brought to Clarion off market through broker • The majority of the senior-level engineering talent who
relationships in market. oversee the manufacturing processes live within
45 minutes of the site.
6
Source: Clarion Partners. As of October 7, 2021. This investment represents 8.9% of relative percentage of the holding of the entire portfolio (100%). Characteristics and holdings
weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. There can be no assurance that any unrealized
investment described herein will prove to be profitable. Not to be construed as a recommendation to purchase or sell any security.
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
7
456 SULLIVAN AVENUE
SOUTH WINDSOR, CT
Investment overview7
Investment type Joint Venture
Date of investment February 11, 2021
Purchase price at share $47.5 million
Ownership share 95%
Property overview
Property type Industrial Warehouse
Square footage 304,249 sf
Investment summary Property description
• 100% triple net leased through 2030, limiting rollover • Strategically located along I-84 and I-91, offering
risk and minimizing capital expenditures. convenient access to the Hartford, Providence, Boston,
and NYC regional distribution markets.
• Delivers attractive 10-year cash flow stream.
• The Hartford industrial market and East Hartford
• Leased to a blue-chip transportation company – who submarket continue to exhibit strong relative rent
currently occupies 1.1 million sf across seven other growth, and are well positioned to outperform other
Clarion assets. national industrial markets in the near term.
• Experienced joint venture partner with significant local • Built in 2012 as a build-to-support for the tenant, who
market knowledge and presence. has since increased their investment into the property
through significant capital improvements.
7
S ource: Clarion Partners. As of October 7, 2021. This investment represents 10.3% of relative percentage of the holding of the entire portfolio (100%). Characteristics and holdings
weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. There can be no assurance that any unrealized
investment described herein will prove to be profitable. Not to be construed as a recommendation to purchase or sell any security.
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
8
100 FRIARS BOULEVARD
WEST DEPTFORD, NJ
Investment overview8
Investment type Direct equity
Date of investment March 18, 2020
Purchase price at share 20.2 million
Ownership share 100%
Property overview
Property type Warehouse
Square footage 182,587 sf
Investment summary Property description
• Accessible industrial node in strong sub-market with • Fully occupied, attractive industrial asset that
low vacancy rate. is located at a prominent distribution location in
Southern New Jersey near Philadelphia.
• As Central and Northern New Jersey continue to
experience extremely low vacancy rates and strong • The sub-market benefits from highway connectivity
relative rent growth, Southern New Jersey is similarly and has seen healthy demand from logistics users.
well positioned to outperform other industrial markets
on a national level. • Triple net lease terms free landlords of maintenance
issues, facilitating the conversion of rental flows into
• 10-year term with a durable cash flow stream, given full a steady income stream.
occupancy by a reliable tenant over the life of this lease.
8
S ource: Clarion Partners. As of October 7, 2021. This investment represents 7.8% of relative percentage of the holding of the entire portfolio (100%). Characteristics and holdings
weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. There can be no assurance that any unrealized
investment described herein will prove to be profitable. Not to be construed as a recommendation to purchase or sell any security.
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
9
AERTSON MIDTOWN
NASHVILLE, TN
Investment overview9
Investment type Structured debt
Date of investment September 30, 2019
Purchase price at share 18.0 million
Ownership share 100%
Property overview
Property type Mixed use
Gross size 410,766 sf
Residential units 350
Hotel keys 180
Retail square footage 37,000 sf
Investment summary Property description
• Recapitalization of a recently developed Class A • Walkable, highly amenitized asset in an urban setting.
residential mixed-use building.
• Well-located near Vanderbilt University, a main-and-main
• Nashville’s economy is strong and expanding. Its job location in Nashville.
and rent growth are outpacing the national average.
Nashville was ranked #2 nationally among cities creating • Experiential-oriented destination with best-in-class facilities.
the most high-paying jobs.10
9
Source: Clarion Partners. As of October 7, 2021. This investment represents 8.6% of relative percentage of the holding of the entire portfolio (100%). Characteristics and holdings
weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. There can be no assurance that any unrealized
investment described herein will prove to be profitable. Not to be construed as a recommendation to purchase or sell any security.
Source: CBRE and Forbes. As of 2018.
10
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.
1011
Clarion Partners Real Estate Income Fund For more information,
Clarion Partners Real Estate Income Fund (CPREIF) offers investors access please visit
to an institutional-quality* portfolio of private real estate investments,
with the convenience and oversight structure of a 1940 Act-registered, www.CPREIF.com
continuously offered closed-end fund and the tax efficiency of a real estate
investment trust (REIT).
Target Property Characteristics
• Stabilized, well-leased, cash flow-producing properties
• Markets and properties with favorable growth prospects
• Exposure to different geographic regions and property sectors**
franklintempleton.com
cpreif.com
At Franklin Templeton, everything we do has a single focus: to deliver better client outcomes.
• We have deep expertise across equity, fixed income, alternatives, multi-asset solutions
and cash strategies.
• We offer an unmatched range of specialist investment managers, consisting of more than
1,300 investment professionals.
• Over 70 years of experience in identifying opportunities and delivering investment
solutions to clients.
Investment risks
The Fund is newly organized, with a limited history of operations. An investment in the Fund involves a considerable amount of risk. The Fund is designed 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 favorable price. Fixed income
securities involve interest rate, credit, inflation and reinvestment risks. As interest rates rise, the values of fixed income securities fall. High-yield bonds possess greater price
volatility, illiquidity and possibility of default. The Fund’s investments are highly concentrated in real estate investments, and therefore will be subject to the risks typically
associated with real estate, including but not limited to local, state, national or international economic conditions; including market disruptions caused by regional concerns, political
upheaval, sovereign debt crises and other factors. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. The Fund employs
leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if an underlying fund’s investments decline in value. The Fund may use
derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance.
Liquidity considerations
The Fund should be viewed as a long-term investment, as it is inherently illiquid and suitable only for investors who can bear the risks associated with the
limited liquidity of the Fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no more than 5% of the Fund’s
shares outstanding at net asset value. There is no guarantee these repurchases will occur as scheduled, or at all. Shares will not be listed on a public exchange,
and no secondary market is expected to develop.
Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not
constitute, and should not be construed as, investment advice, a forecast of future events, a guarantee of future results, or a recommendation with respect to any particular
security or investment strategy or type of retirement account.
* Institutional-quality real estate refers to commercial real estate properties whose scale and balance sheet quality meet the standards typically applied by institutional investors.
** Property sectors may include, but are not limited to, warehouse, multifamily, office, retail, hospitality, student housing, medical and health care facilities, and self-storage.
© 2021 Franklin Distributors, LLC. Member FINRA/SIPC. All rights reserved. Clarion Partners, LLC and Western Asset Management Company, LLC are Franklin Templeton
affiliated companies. CLAR588379 CPR PH 1021
BEFORE INVESTING, CAREFULLY CONSIDER A FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. YOU CAN FIND THIS AND
OTHER INFORMATION IN EACH PROSPECTUS, AND SUMMARY PROSPECTUS, IF AVAILABLE, AT WWW.LEGGMASONFUNDS.COM. PLEASE READ
THE PROSPECTUS CAREFULLY.
INVESTMENT PRODUCTS: NOT FDIC INSURED. NO BANK GUARANTEE. MAY LOSE VALUE.You can also read
