UNITED STATES- Los Angeles Fire & Police Pension System is taking a look at three separate real estate buys through a mixture of fund selection and direct investment.
The pension fund’s real estate consultant, The Townsend Group, will support the analysis of two commingled funds as well as assessment of a direct investment in a Los Angeles-based portfolio, to be completed through a separate account relationship.
It is expected the study will be completed over the next two months with the support of Townsend Group principal Micolyn Yalonis, looking first at the CIM Urban Real Estate Fund III value-added commingled fund.
Yalonis said investors can expect to see a 20% net IRR and an equity multiple of 2x on the fund investing capital in "underserved urban areas with high population density" in North America.
Assets will be invested in a variety of property types including apartments, retail, office, parking and mixed-use but targeted specifically at opportunities in California, metro Washington, DC and the Northeast.
The second commingled fund being assessed is the Capri Urban Investors, a $2bn (€1.5bn) high return investment fund which carries 65% leverage and predicted gross IRR of 18%.
Capri Capital Partners, the real estate manager behind the fund, will use some of the assets to buy "income-producing stabilized assets" as well as development and redevelopment deals in urban locations.
Most properties will be purchases in the United States but the Capri Urban Investors fund does allow up to 10% of the assets to be placed in Canada, Mexico or Puerto Rican real estate.
Transactions for the fund can also be structured as straight equity investments, joint ventures, preferred equity and mezzanine investments.
Los Angeles Fire & Police has also Townsend look into whether the pension fund should buy an individual property in the Los Angeles area called Rose Properties Southwest, LLC.
If the deal goes through, the property would be acquired through the pension fund’s separate account manager, Heitman.
