New York Teachers Pension Invests $140 Million in Retail, Office Properties

Manhattan

The New York State Teachers Retirement System (NYSTRS) has committed a total of $140 million to three real estate funds that invest in retail, office and apartment properties.

From IPE Real Estate:

The [New York State Teachers Retirement System] has committed $40m to the Edens Investment Trust alongside $50m allocations to Madison Realty Capital’s Debt Fund III and Rockpoint’s Core Plus Real Estate Fund.

The pension fund said Edens, which invests in retail properties in US Southeast and East Coast regions, is attractive due to its focus on grocery-anchored necessity retail, a sub-sector more economically resistant to market conditions.

“Our decision to provide additional growth capital is a reflection of Edens’ deep, seasoned development/redevelopment team with a proven track record over multiple cycles,” NYSTRS said.

The pension fund has now invested $447m in Edens, in which it holds a 30% stake.

Madison Realty Capital, meanwhile, is targeting a total equity raise of $600m for its Debt Fund III, with a hard cap of $700m.

The real estate manager will co-invest up to $5m in the fund, which has a targeted 16% net IRR.

Debt Fund III will seek to originate and acquire senior-secured loans, mezzanine loans and preferred equity investments collateralised by commercial real estate.

NYSTERS was one of the last investors to go into Rockpoint’s Core Plus Fund, for which $965m was raised.

[…]

NYSTRS said its previous experience with Rockpoint was one of several reasons for going into the fund.

The Core Plus Fund, focused on office and apartment properties in the East and West Coasts of the US, is targeting a 9-10% net IRR, with a significant component from current cash flow.

The NYSTRS has $95 billion in assets.

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