Clarion Partners Real Estate Income Fund Inc., a new non-traded real estate investment trust, has closed on its first investment, an $18 million structured debt investment to Buckingham Companies for the recapitalization of Aertson Midtown, a newly constructed property in Nashville, Tennessee’s Midtown/West End neighborhood.
Aertson Midtown is comprised of 350 Class A apartment units, more than 31,000 square feet retail space, and a 180-room luxury hotel. Buckingham Companies, based in Indianapolis, oversees a $2 billion real estate portfolio for its own account, third-party owners and institutional partners, and specializes in property development, acquisition, renovation and asset management.
Clarion Partners Real Estate Income Fund is a recently launched daily net asset value REIT that that seeks to raise up to $1 billion to invest in a portfolio of private commercial real estate and publicly traded real estate securities.
The REIT is managed by affiliates of Legg Mason, the global asset management firm that has more than $780 billion in assets under management. Clarion Partners and Western Asset, both of which are also affiliated of Legg Mason, serve as sub-advisor and securities sub-adviser, respectively.
The REIT has four share classes including Class S, Class T, Class D, and Class I shares that are offered on a continuous basis at NAV per share. Shares were originally priced at $10.00 each, excluding sales loads and fees.
Class D shares have no sales commissions or dealer manager fees, and have a 0.25 percent stockholder servicing fee.
Class I shares have no sales commissions, dealer manager fees or servicing fees.
Class S shares have a maximum sales load of up to 3.5 percent of the offering price.
Class T shares have a 3.0 percent maximum sales load and a 0.5 percent dealer manager fee.
Participating broker-dealers will receive ongoing distribution and servicing fees of 0.85 percent of NAV year for Class S and Class T shares only (consisting of a 0.60 percent distribution and a 0.25 percent stockholder servicing fee).
Legg Mason Investor Services is the principal underwriter and distributor of the common stock. The Bank of New York Mellon serves as the fund’s custodian, and DST Asset Manager Solutions serves as transfer agent.
The minimum initial investment is $2,500 for Class S, Class T and Class D shares, and $1 million for Class I shares.