San Mateo, California–(business wire) — Clarion Partners Real Estate Income Fund, Inc. (CPREIF) will provide a mezzanine loan subordinated to two senior loans initiated by Blackstone Real Estate and owned by Brixstone Partners and Daniel Otis of Boulder, Colorado2 We refinanced two student housing assets. Worth over $180 million. The senior loan was arranged by KeyBank Real Estate Capital.
Also known as the Brickstone Boulder Portfolio, the two properties consist of 312 units and 463 beds and are within walking distance of the University of Colorado Boulder (CU Boulder) campus. Renovated in 2015 and 2016, the property is adjacent to the CU Boulder campus, with views of the Rocky Mountains, and close to Pearl Street Mall and Downtown Boulder. Both properties feature modern interior unit finishes including stainless steel appliances, quartz countertops, oversized closets and wood style floors.
More than 36,000 CU Boulder students live in the city of Boulder, making it one of the largest concentrations of skilled workers in the United States. The presence of major employers and large research universities, coupled with convenient access to an abundance of outdoor recreational activities, continue to attract strong technology and life sciences talent seeking a higher quality of life.
“While rental properties in Boulder rarely come on the market, the Brickstone Boulder portfolio was a rare opportunity for the administration of an educational institution to finance two high quality assets that provide value to students and their families. said Janet Suk, CPREIF Portfolio Manager. “As a significant investor in Boulder, Clarion and his Partners have consistently maintained very high occupancy rates and have a positive long-term view of the city’s student housing market, which shows no signs of slowing down. I think there will be a tailwind.”
Clarion Partners, a leading U.S. real estate investment manager, is part of Franklin Templeton’s Alternatives business, with a broad range of strategies including real estate, private credit, hedge funds, secondary private equity and co-investments with approximately $224 billion in assets. straddling. Under management as of June 30, 2022.
About Clarion Partners Real Estate Income Fund (CPREIF)
CPREIF provides retail investors with direct access to a portfolio of private, income-generating commercial real estate through innovative investment funds based on Clarion’s deep real estate expertise. CPREIF is a non-diversified, closed-end investment firm that offers common stock on an ongoing basis. 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 a majority-owned Indirect subsidiary. of Franklin Resources. In addition, the Fund’s securities sub-advisor, Western Asset Management, is also an indirect wholly-owned subsidiary of Franklin Resources. A hard copy of the fund’s complete audited financial statements is available free of charge upon request. For more information on CPREIF, please visit CPREIF.com.
About Clarion Partners
Clarion Partners is an SEC Registered Investment Manager with FCA accredited and FINRA member affiliates and has been a leading real estate investment manager in the United States for 40 years. Headquartered in New York, we maintain offices strategically located in the United States and Europe. With $81.4 billion in assets under management, Clarion Partners provides over 500 domestic and international institutional investors with a wide range of real estate strategies spanning risk and return. For more information about the company, please visit www.clarionpartners.com.
About Blackstone Real Estate
Blackstone is a world leader in real estate investment. Blackstone’s real estate business was founded in 1991 and manages US$320 billion of investor capital. Blackstone is the world’s largest owner of commercial real estate, owning and operating properties across all major geographies and sectors, including logistics, residential, office, hospitality and retail. Our opportunistic funds seek to acquire undermanaged and well-located assets around the world. Blackstone’s Core+ business is aligned with strategies for institutional investors and income-oriented retail investors, including Blackstone Real Estate Income Trust, Inc. (BREIT), a U.S. unlisted REIT, and Blackstone’s European yields. We invest in substantially stable global real estate assets through both strategies. oriented strategy. Blackstone Real Estate also operates one of the world’s leading real estate debt businesses, providing comprehensive lending solutions across the capital structure and risk spectrum, including managing Blackstone Mortgage Trust (NYSE: BXMT).
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] Operating as Franklin Templeton, is a global investment management organization with subsidiaries serving clients in more than 155 countries. Franklin Templeton’s mission is to help clients achieve better results through his investment management expertise, wealth management, and technology solutions. Through its specialist investment managers, the company offers boutique expertise on a global scale, bringing a broad range of capabilities across fixed income, equities, alternatives 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. is operating. For more information, visit franklinresources.com and follow us. We at LinkedIn twitter and Facebook.
About Brickstone Partners
Brickstone Partners, Inc. is a real estate private equity firm located in Nashville. Founded in 2001 by Daniel Otis in his own right, Brickstone has invested in and developed more than $1 billion worth of office, retail and multi-family homes. Most recently, Brickstone has focused on acquiring and developing student and multifamily housing in core markets that benefit from strong tailwinds. Brickstone strives to source and execute investment opportunities with asymmetric risk and reward. Generates positive opportunistic yields with less risk than usual.
*Acquisition of The Lodge represents 4% of total portfolio ownership (100%) and acquisition of The Parker represents 2% of total portfolio ownership (100%). Both figures are as of August 5, 2022. Characteristics and holdings are based on the entire portfolio and are subject to change at any time. They are provided for informational purposes only. This information is not a recommendation to buy or sell securities. There is no guarantee that any unrealized investments described herein will be profitable.
The fund is recently formed and has limited track record. Investing 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 in the Fund at all or at a favorable price. Fixed income securities are subject to interest rate, credit, inflation and reinvestment risks. When interest rates rise, bond values fall. High yield bonds are volatile, illiquid and subject to default. The Fund’s investments are highly concentrated in real estate investments and are therefore exposed to risks normally associated with real estate, including, but not limited to, local, state, national or international economic conditions. This includes market turmoil caused by regional concerns, political turmoil, sovereign debt crises, and other factors. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risk. The Fund and/or its subsidiaries employ leverage. This increases the volatility of investment returns and magnifies losses for the fund if the value of the underlying fund’s investment declines. The Fund may use derivatives such as options and futures, which are illiquid and may disproportionately increase losses, which can significantly affect the performance of the Fund.
The Fund should be considered a long-term investment as it is inherently illiquid and suitable only for investors who are able to bear the risks associated with the Fund’s limited liquidity. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers not exceeding his 5% of the Fund’s outstanding shares by net asset value. There is no guarantee that these buybacks will occur on time or not at all. The shares will not be listed on public exchanges and no secondary market is expected to develop.
Please carefully consider the Fund’s investment objectives, risks, charges and expenses before investing. This and other information can be found in each prospectus or summary prospectus (if available) at www.franklintempleton.com. Please read well.
All investments involve risks, including loss of principal. Past performance is no guarantee of future results.
Any information, statements or opinions expressed herein are of a general nature and are not directed at or based on the financial circumstances or needs of any particular investor and are not intended as investment advice or forward-looking statements. does not constitute a prediction of the events of and should not be construed as such. , guarantees of future results, or recommendations regarding specific security or investment strategies or types of retirement accounts. Investors seeking financial advice regarding the suitability of investing in securities or investment strategies should consult a financial professional.
INVESTMENT PRODUCT: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
©2022 Franklin Distributors, LLC, Member FINRA, SIPC. Franklin Distributors, LLC and Clarion Partners, LLC are all subsidiaries of Franklin Resources, Inc.