Property is 100% Leased to Worldwide Logistics Leader
SAN MATEO (Aug. 18, 2021) Clarion Partners Real Estate Income Fund Inc. (CPREIF) has provided a $14 million mezzanine loan to commercial real estate investment and development firm SomeraRoad to refinance a space in downtown Memphis, TN that’s 100% leased to a global logistics leader. Clarion expects the 193,000 square foot class A creative office building to continue providing stable cash flow from a Fortune 100 investment-grade tenant, which has been headquartered in the Memphis market for over 47 years.
Clarion Partners, LLC (“Clarion Partners”), a leading U.S. real estate investment manager, is one of Franklin Templeton’s specialist investment managers.
Formerly home to a Gibson USA guitar production facility, the property is located in the heart of Memphis’ Beale Street Entertainment District. The property underwent a $50+ million renovation that was completed in early 2021 in a build-to-suit arrangement. It was subsequently leased to the tenant on a long-term basis in order to offer employees greater access to Memphis’ lively live-work-play downtown amenities including retail, restaurants and entertainment venues. Employees have recently started occupying the space as COVID restrictions have eased.
“Memphis serves as a prominent transportation and logistics hub, with the Memphis International Airport ranking as the second-busiest cargo hub in the world,” said Clarion Partners Managing Director Rick Schaupp. “The newly renovated space in the city’s entertainment district, leased to a high-quality tenant with an historically strong foothold in Memphis, also enjoys proximity to I-40, which provides strong connectivity to the larger metro area. This is an incredible opportunity to invest in a creative office space in a stable Sun Belt market.”
CPREIF’s private real estate investment strategy incorporates investments in wholly-owned assets, joint ventures and structured debt investments. This is the new fund’s second mezzanine investment and fourth property deal this year.
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CPREIF is a non-diversified, closed-end management investment company that continuously offers its common stock. The fund’s investment manager, Legg Mason Partners Fund Advisor, LLC, is an indirect, wholly owned subsidiary of Franklin Resources, Inc. (“Franklin Resources”) and the fund’s investment subadviser, Clarion Partners, is an indirect, majority-owned subsidiary of Franklin Resources. In addition, the fund’s securities sub-adviser, Western Asset Management, LLC, also is an indirect wholly owned subsidiary of Franklin Resources. Hard copies of the fund’s complete audited financial statements are available free of charge upon request. More information about CPREIF is available here.
About Clarion Partners
For nearly four decades, Clarion Partners has managed real estate on behalf of many of the world’s largest and most well-known institutional investors. Through CPREIF, individual investors can tap into Clarion’s expertise and track record. Its funds geared toward individuals are managed in the same disciplined manner as its institutional assets, and with the same focus on creating value through superb execution.
Headquartered in New York, Clarion Partners maintains strategically located offices across the United States and Europe. With more than $63 billion in total real estate and debt assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to its more than 500 institutional investors across the globe. Clarion Partners is an independent subsidiary of Franklin Templeton.
About Franklin Templeton
Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 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, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.