NEW YORK--(BUSINESS WIRE)-- Franklin Templeton and its specialist investment manager, Clarion Partners, are today announcing Clarion Partners Real Estate Income Fund Inc.’s (NASDAQ: CPREX) entry into the industrial outdoor storage (IOS) subsector via a debt investment in an eight-property multi-city portfolio and the purchase of an IOS property in Houston.

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Clarion Partners Real Estate Income Fund is providing a first mortgage loan to a joint venture between Outour Storage Investments and affiliates of Cerberus Capital Management for a portfolio of eight industrial outdoor storage (IOS) properties spanning 50+ acres across seven MSAs.

CPREX is a closed-end tender offer fund that provides individual investors with access to institutional-quality private real estate through stable, well-leased, cash flow-producing properties across multiple U.S. markets.¹

Clarion is providing a first mortgage loan to a joint venture between Outour Storage Investments and affiliates of Cerberus Capital Management for a portfolio of eight IOS properties spanning 2.3 million square feet (50+ acres) across seven MSAs including Chicago, Phoenix, Las Vegas, Houston, Inland Empire, Dallas / Fort Worth and Atlanta. Eastdil Secured served as the advisor on the transaction.

“This portfolio is a relatively rare assembly of IOS properties with best-in-class specifications, terrific market locations and a strong roster of national and regional credit tenants,” said Clarion Partners Portfolio Manager Brent Jenkins. “This financing provides an ideal opportunity to expose our investors to this high-demand subsector within the larger industrial and logistics sector.”

Additionally, CPREX acquired a 7.59-acre IOS site improved with a 23,294 square foot building that is 100% leased to a leading North American waste services company for approximately seven years. The asset, 15550 Export Plaza Drive in the Houston MSA, was fully renovated in 2024 with Class A yard improvements, refreshed office space, a new roof, new warehouse roof insulation and LED lighting. It is strategically located in the World Houston Business Center directly off Beltway 8, just three miles from George Bush Intercontinental Airport and 23 miles from the tenant’s national headquarters.

“CPREX’s investment in these assets takes advantage of the fund’s ability to invest in both debt and equity deals on behalf of its investors, potentially capturing interest income, rental income and capital appreciation opportunities,” said Clarion Partners Portfolio Manager Rick Schaupp.

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 more than 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe. With over $72 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 500 institutional investors across the globe. Clarion is scaled in all major property types and was an early entrant into the Industrial sector. The Firm’s global industrial team manages a 1000+ property portfolio in the U.S. and Europe consisting of more than 255 million square feet. For more information visit www.clarionpartners.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 over 150 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 specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.58 trillion in assets under management as of February 28, 2025. For more information, please visit franklintempleton.com and follow us on LinkedIn, X and Facebook.

¹ An institutional-grade or institutional-quality property generally refers to a property of sufficient size and stature to merit attention from large national or international investors.

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Investment Risks:

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. Past performance is no guarantee of future results. All investments involve risk, including loss of principal. Diversification does not ensure against loss. An investment should be considered long-term within a multi-asset portfolio and should not be viewed individually as a complete investment program. The Fund is subject to a high degree of risk; additional risk considerations are listed below:

Liquidity Risks:

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. Shareholders may not be able to sell their shares in the Fund at all or at a favorable price.

Real Estate Investment Risks:

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 fluctuations in lease occupancy rates and operating expenses, variations in rental schedules, which in turn may be adversely affected by local, state, national or international economic conditions. Such conditions may be impacted by the supply and demand for real estate properties, zoning laws, rent control laws, real property taxes, the availability and costs of financing, and environmental laws.

Furthermore, investments in real estate are also impacted by market disruptions caused by regional concerns, political upheaval, sovereign debt crises, and uninsured losses (generally from catastrophic events such as earthquakes, floods and wars). Investments in real estate related securities, such as asset-backed or mortgage-backed securities are subject to prepayment and extension risks.

Private Market Investments Risks:

An investment in the Fund is suitable only for investors who can bear the risks associated with private market investments (such as private credit and private equity) with potential limited liquidity. Shares will not be listed on a public exchange, and no secondary market is expected to develop.

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