SAN MATEO, Calif.–(BUSINESS WIRE)–Clarion Partners Real Estate Income Fund Inc. (CPREIF) has strategically expanded its real estate portfolio with the acquisition of three fully leased warehouse and distribution buildings totaling 109,644 square feet in Chino, Calif. ‘Inland Empire West (“IE West”) submarket*. The transaction was marketed by JLL Capital Markets.
Chino Micro Market is a highly sought after location in IE West with great freeway access and lower transportation costs than many other micro markets in the Inland Empire. The properties are within 10 miles of SR 71, SR 60, and I-10, all of which provide connectivity to major Southern California infrastructure. The properties are also located 10 miles west of Ontario International Airport and approximately 50 miles from the ports of Los Angeles and Long Beach, the two largest container ports in the United States.
“We are excited about this opportunity to expand CPREIF’s industrial holdings in this premier US distribution center,” said Janet Souk, senior vice president of Clarion Partners and portfolio manager of CPREIF. “Clarion Partners is already overseeing a stabilized 4.5 million square foot portfolio in IE West (with a 7 million square foot development pipeline underway) on behalf of its blended and industrial institutional funds. The Inland Empire’s industrial sector continues to experience low vacancy rates amid steady demand.
“We are delighted to be working again with the professional team at Clarion Partners on the acquisition of this Inland Empire portfolio,” said Mark Detmer, Senior Managing Director and Industry Group Head of JLL Capital Markets. “Demand for well-maintained, well-priced industrial assets in the Inland Empire remains strong, and small bay buildings such as those in this portfolio fulfill a critical need to provide operating space for our local businesses here. in Southern California. Both buyer and seller are happy with the outcome, and we are grateful to the private seller for trusting us to handle this generational sale on their behalf.
Built between 1997 and 1998, the three buildings sit on 5.74 acres of land and feature 24-foot headroom, ample trucking land and ample parking. The new management team plans to invest additional capital in maintenance items, including new paint on all building exteriors and new roof cladding and new skylights for Building 1.
Click here to read Clarion Partners’ latest outlook on the US industrial sector.
Clarion Partners, a leading U.S. real estate investment manager, is part of Franklin Templeton’s alternative businesses, which cover a wide range of strategies, including real estate, private credit, hedge funds, secondary private equity and co-investments with approximately $224.8 billion in assets. under management as of June 30, 2022.
About Clarion Partners Real Estate Income Fund Inc. (CPREIF)
The CPREIF offers individual investors direct access to a portfolio of private and income-generating commercial real estate properties through an innovative investment fund powered by Clarion’s deep real estate expertise. CPREIF is a non-diversified closed-end investment company that continuously offers its common shares. 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 sub-advisor, Clarion Partners, is an indirect subsidiary with majority ownership. Franklin Resources. Additionally, the fund’s securities sub-advisor, Western Asset Management, is also 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 on the CPREIF is available at CPRIF.com.
About Clarion Partners
Clarion Partners, an SEC-registered investment adviser with affiliates authorized by the FCA and members of FINRA, has been a leading manager of real estate investments in the United States for 40 years. Based in New York, the company has offices strategically located in the United States and Europe. With total assets under management of $81.4 billion, Clarion Partners offers a wide range of real estate strategies across the risk/return spectrum to its more than 500 national and international institutional investors. Clarion is a leader among US industrial portfolio operators, with a particular focus on warehouse/distribution facilities, and a portfolio of 920 properties (consisting of over 211 million square feet and currently valued at 42.8 billion dollars), located in 45 markets across the United States and Europe. More information about the company is available at www.clarionpartners.com.
JLL (NYSE: JLL) is a leading professional services firm specializing in real estate and investment management. JLL is shaping the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, incredible spaces, and sustainable real estate solutions for our clients, associates, and communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in more than 80 countries and a global workforce of more than 100,000 people as of March 31, 2022. JLL is the brand name and a registered trademark of Jones Lang LaSalle Incorporated. For more information, visit jll.com.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in more than 155 countries. Franklin Templeton’s mission is to help clients achieve better results through expertise in investment management, wealth management and technology solutions. Through its specialist investment managers, the firm offers boutique specialization globally, bringing extensive capabilities in fixed income, equity, alternative and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based firm has 75 years of investment experience and approximately $1.4 trillion in assets under management as of June 30, 2022. For more information, please visit franklinresources.com and follow us on LinkedIn, Twitter and Facebook.
*The acquisition of Chino Industrial Portfolio in Chino, CA represents 7% of the relative percentage ownership of the entire portfolio (100%) as of August 17, 2022. Characteristics and ownership weightings are based on portfolio total and are subject to change. at any time; they are provided for informational purposes only. This information should not be construed as a recommendation to buy or sell a security. There can be no assurance that any unrealized investment described herein will prove profitable.
The Fund is newly organized with a limited operating history. An investment in the Fund involves considerable 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 of 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 value of fixed income securities declines. High yield bonds exhibit greater price volatility, illiquidity and possibility of default. The Fund’s investments are highly concentrated in real estate investments and will therefore be subject to the risks generally associated with real estate, including, but not limited to, local, state, national or international economic conditions; including market disruptions caused by regional concerns, political upheavals, sovereign debt crises and other factors. Asset-backed, mortgage-backed or mortgage-linked securities are subject to prepayment and extension risks. The Fund and/or its subsidiaries employ leverage, which increases the volatility of investment returns and exposes the Fund to magnified losses if the value of an underlying fund’s investments declines. The Fund may use derivatives, such as options and futures, which may be illiquid, may increase losses disproportionately and have a potentially significant impact on the performance of the Fund.
The Fund should be considered a long-term investment as it is inherently illiquid and only suitable for investors who can bear the risks associated with the Fund’s limited liquidity. Limited liquidity is provided to shareholders only through the Fund’s quarterly redemption offers for up to 5% of the Fund’s shares outstanding at net asset value. There is no guarantee that these redemptions will occur as planned, or at all. The shares will not be publicly traded and no secondary market is expected to develop.
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INVESTMENT PRODUCTS: NOT INSURED BY THE FDIC | NO BANK GUARANTEE | MAY LOSE VALUE
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