SAN MATEO, Calif.--(BUSINESS WIRE)--Clarion Partners Real Estate Income Fund Inc. (CPREIF) has strategically added to its property holdings with the acquisition of Rojas East Distribution Center, two fully leased warehouse and distribution buildings totaling 369,310 square feet in El Paso, Texas. The deal was marketed by JLL Capital Markets on behalf of Hunt Southwest, a Dallas-based real estate development company.
The East industrial submarket of El Paso is fueled by international trade between the U.S. and Mexico, with El Paso serving as the logistics node for the neighboring manufacturing hub of Ciudad Juarez. The property is 1.35 miles southeast of the I-10 and State Highway Loop 375 interchange and conveniently located near the U.S./Mexico border, El Paso International Airport and downtown El Paso, facilitating local, regional, national and international distribution. The property is also situated near two main U.S. Customs and Border Protection checkpoints, the Santa Teresa Port of Entry and the Ysleta Port of Entry, which are essential to the movement of goods across the U.S./Mexico border.
“CPREIF is excited to enter the El Paso market, which saw more than $123 billion in cross-border commerce in 2021, and add Rojas East to our portfolio,” said Managing Director and CPREIF Portfolio Manager Rick Schaupp. “We believe the East industrial submarket is ripe for more growth and will continue to attract high-quality, institutional tenants in need of manufacturing and logistics space in the immediate area. Given the property’s strategic location at the ‘Main and Main’ of El Paso’s industrial landscape, Rojas East will position our firm well to capitalize on further investment opportunities within this budding submarket.”
“We anticipated that the Rojas East Distribution Center would lease and sell quickly, given the exponential growth in this market and lack of available spec development,” said Hunt Southwest President Preston Herold. Rojas East was Hunt Southwest’s first foray into El Paso; the firm has also completed large spec projects in the greater Houston and Dallas-Fort Worth markets.
Dustin Volz, Senior Managing Director of Dallas JLL Capital Markets, said, “El Paso's industrial market continues to see an influx of institutional capital as it boasts some of the strongest market fundamentals in the country.”
Developed in 2021, Rojas East sits on 21.24 acres and features modern, Class A specifications including 28’-32’ clear heights, 56 dock doors, LED light fixtures, ESFR sprinkler systems, 42 trailer storage stalls and 292 car parking spaces.
Click here to read Clarion Partners’ latest outlook on the U.S. industrial sector.
Clarion Partners, a leading U.S. real estate investment manager, is part of Franklin Templeton’s alternatives business, which spans a broad range of strategies, including real estate, private credit, hedge funds and 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)
CPREIF offers individual investors direct access to a portfolio of privately-held, income-producing commercial real estate properties through an innovative investment fund driven by Clarion's deep real estate expertise. 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 sub-adviser, Clarion Partners, is an indirect, majority-owned subsidiary of Franklin Resources. In addition, the fund’s securities sub-adviser, Western Asset Management, 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 at CPREIF.com.
About Clarion Partners
Clarion Partners, an SEC registered investment adviser with FCA-authorized and FINRA member affiliates, has been a leading U.S. real estate investment manager for 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe. With $81.4 billion in total assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to its more than 500 domestic and international institutional investors. Clarion is a leader among U.S. industrial portfolio operators, with particular emphasis on warehouse/distribution facilities, and a 920-property portfolio (consisting of more than 211 million square feet and currently valued at $42.8 billion), located in 45 markets across the United States and Europe. More information about the firm is available at www.clarionpartners.com.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Hunt Southwest Real Estate Development
Hunt Southwest Real Estate Development is a Dallas-based, full-service real estate development company with a focus on industrial and cold storage development in the Texas market. Hunt Southwest is a joint venture between Unity Hunt, which is the Lamar Hunt family office, and Hunt Midwest, which is the real estate development company that the family founded in Kansas City in 1985. The Lamar Hunt family’s business portfolio also includes alternative investments and holdings in banking, energy, healthcare, technology, and sports, including the Kansas City Chiefs, Chicago Bulls, and FC Dallas.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 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 offers boutique specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives, and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company 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 Rojas East Distribution Center in El Paso, Texas represents 11% of relative percentage of the holding of the entire portfolio (100%) as of August 5, 2022. Characteristics and holding weightings are based on the total portfolio 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 purchase or sell any security. There can be no assurance that any unrealized investment described herein will prove to be profitable.
Investment Risks
The Fund is recently 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 value 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 and/or its subsidiaries employ 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.
Before investing, carefully consider a Fund’s investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, or summary prospectus, if available, at www.franklintempleton.com. Please read it carefully.
All investments involve risk, including loss of principal. Past performance is no guarantee of future results.
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, 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. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.
INVESTMENT PRODUCTS: 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.
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