This marks Clarion's third debt investment in a variation of the Portfolio
NEW YORK, N.Y., July 25, 2025 – Franklin Templeton and its specialist investment manager, Clarion Partners, are today announcing Clarion Partners Real Estate Income Fund Inc.’s (NASDAQ: CPREX) $50 million mezzanine loan for the Agellan Portfolio III, a collection of 29 properties located across 10 MSAs and seven states. The mezzanine loan is part of the portfolio’s $350 million refinancing led by Wells Fargo.
The Portfolio is comprised primarily of shallow bay/last-mile warehouse buildings.
“We are pleased to work with the Agellan team again – they are quite skilled in this particular industrial sub-sector,” said Clarion Managing Director Drew Fung. “Our existing relationship with Agellan and our deep familiarity with the assets enabled us to move efficiently and confidently through a transaction requiring an accelerated timeline.”
The Portfolio is concentrated in strategic infill locations in strong industrial markets across Texas, Georgia, Florida, Indiana, Kentucky, Illinois, and Maryland. The Portfolio’s average suite size of 17,000 sq. ft. feet supports a diverse tenant base with mission-critical operations.
“This portfolio is a relatively rare assembly of shallow bay/last-mile 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. “With limited new supply of sub-150,000 sq. ft. assets being built over the past decade, this asset class has shown resilience, benefiting from strong demand and rent growth.”
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
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 $73 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 ~1000 industrial properties in the U.S. and Europe consisting of approximately 250 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.
2 The acquisition of this mezzanine loan represents 4.78% of the relative percentage of the holding of the entire portfolio (100%) as of July 11, 2025. 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.
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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.
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Private Market Investments Risks:
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Contacts
Franklin Templeton Corporate Communications:
Adrienne Herrera, +1 (718) 360-7933, adrienne.herrera@franklintempleton.com
Press Contact, Craft & Capital:
Chris Sullivan, + (917) 902-0617, chris@craftandcapital.com