SAN MATEO, California–(BUSINESS WIRE). valued at more than $180 million. The senior loans were arranged by KeyBank Real Estate Capital.
The two properties, also referred to as the Brickstone Boulder portfolio, have a combined total 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 properties are adjacent to the CU Boulder campus, offer views of the Rocky Mountains and are close to Pearl Street Mall and downtown Boulder. Both properties feature contemporary interiors, including stainless steel appliances, quartz countertops, oversized closets, and wood-style floors.
The city of Boulder is home to more than 36,000 students at CU Boulder and has one of the largest concentrations of tech workers in the country. The presence of major employers and a major research university, combined with convenient access to a wealth of outdoor recreation, continues to attract strong technology and life sciences talent seeking a higher quality of life.
“Rental properties in Boulder rarely come to market, but the Brickstone Boulder portfolio was a rare opportunity to lend against two high-quality assets where institutional management provides value for students and their families,” said CPREIF portfolio manager Janet Souk. “As a major investor in Boulder, Clarion Partners believes there is positive long-term tailwind for the city’s student housing market, which has consistently enjoyed very high occupancy and shows no signs of slowing down.”
Clarion Partners, a leading US real estate investment manager, is part of Franklin Templeton’s alternatives business, which spans a broad range of strategies including real estate, personal debt, hedge funds and secondary private equity and co-investments with assets of approximately $224 billion US Dollars under administration as of June 30, 2022.
About Clarion Partners Real Estate Income Fund Inc. (CPREIF)
CPREIF offers private investors direct access to a portfolio of privately held, high-yield commercial real estate through an innovative investment fund powered by Clarion’s deep real estate expertise. CPREIF is a closed-end, undiversified investment company offering its 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 Sub-Investment Advisor, Clarion Partners, is an indirect majority-owned subsidiary of Franklin Resources . In addition, the Fund’s securities sub-adviser, Western Asset Management, is also an indirect wholly owned subsidiary of Franklin Resources. Hard copies of the Fund’s full audited financial statements are available free of charge upon request. For more information on CPREIF, visit CPREIF.com.
About Clarion Partners
Clarion Partners, an SEC-registered investment advisor with FCA-registered and FINRA member firms, has been a leading US real estate investment manager for 40 years. Headquartered in New York, the company has strategically located offices throughout the United States and Europe. With total assets under management of USD 81.4 billion, Clarion Partners offers its more than 500 national and international institutional investors a wide range of real estate strategies across the entire risk-return spectrum. For more information about the company, visit www.clarionpartners.com.
About Blackstone Real Estate
Blackstone is a global leader in real estate investments. Blackstone’s real estate business was founded in 1991 and has $320 billion in investor capital under management. Blackstone is the world’s largest owner of commercial real estate, owning and operating assets in every major geography and sector, including logistics, residential, office, hospitality and retail. Our opportunistic funds seek to acquire mismanaged, well-located assets around the world. Blackstone’s Core+ business invests in essentially stabilized real estate investments worldwide through both institutional strategies and strategies tailored to income-seeking individual investors, including Blackstone Real Estate Income Trust, Inc. (BREIT), a US unlisted REIT, and Blackstone’s European yield-oriented strategy. Blackstone Real Estate also operates one of the leading global real estate debt companies, providing comprehensive financing solutions across the capital structure and risk spectrum, including the administration of Blackstone Mortgage Trust (NYSE: BXMT).
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management firm with subsidiaries trading as Franklin Templeton serving clients in more than 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its dedicated investment managers, the firm offers boutique specialization on a global scale and brings extensive capabilities across fixed income, equities, alternative investments 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.
About Brickstone Partners
Brickstone Partners, Inc. is a Nashville-based real estate private equity firm. Founded in 2001 by Daniel Otis, Brickstone has been involved in more than $1 billion in office, retail and multifamily investments and developments. Most recently, Brickstone has focused on acquiring and developing student housing and multi-family housing in core markets benefiting from strong tailwinds. Brickstone seeks to identify and implement investment opportunities that present an asymmetry of risk and reward; Generate positive opportunistic returns with less than normal risk.
*The acquisition of The Lodge represents 4% of the relative percentage interest of the entire portfolio (100%) and The Parker represents 2% of the relative percentage interest of the entire portfolio (100%). both figures as of August 5, 2022. Characteristics and holding weights relate to the overall 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 buy or sell any security. There can be no assurance that any unrealized investment described herein will prove profitable.
The fund was recently established and has a limited operating history. An investment in the Fund involves significant risk. The Fund is primarily designed for long-term investors and an investment in the Fund should be viewed as illiquid. Shareholders may not be able to sell their shares in the Fund at all or at an advantageous price. Fixed income securities involve interest rate, credit, inflation and reinvestment risks. When interest rates rise, the value of fixed income securities falls. High yield bonds exhibit greater price volatility, illiquidity and probability of default. The Fund’s investments are heavily focused on real estate investments and are therefore 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 rollover risks. The Fund and/or its affiliates use leverage, which increases the volatility of investment returns and exposes the Fund to greater losses if an underlying fund’s investments decline in value. The Fund may use derivatives such as options and futures, which may be illiquid, disproportionately increase losses and have a potentially large impact on the Fund’s performance.
The Fund should be viewed as a long-term investment as it is inherently illiquid and only suitable for investors who can accept the risks inherent in the Fund’s limited liquidity. Limited liquidity will be provided to Shareholders only through the Fund’s quarterly repurchase offers of no more than 5% of the Fund’s outstanding Shares at Net Asset Value. There is no guarantee that these repurchases will occur on schedule or at all. The Shares will not be listed on any public stock exchange and a secondary market is not expected to develop.
Before investing, carefully consider a fund’s investment objectives, risks, charges and expenses. This and other information can be found in any prospectus or summary prospectus, if available, at www.franklintempleton.com. Please read it carefully.
All investments involve risk, including the loss of capital. Past performance is no guarantee of future results.
All information, statements or opinions contained herein are general in nature, are not intended to be directed at or are not based on the financial situation or needs of any particular investor and do not constitute investment advice or a forecast of future events and should not be construed as, a guarantee of future ones Results or a recommendation regarding a particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in 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.