Minnesota State Board of Investment is investing with Lubert-Adler for the first time.
The pension fund has committed $75m (€66.8m) to the Lubert-Adler Real Estate Fund VII B, according to its website.
As previously reported, the vehicle was structured to allow for a second round of fundraising for Lubert-Adler’s seventh opportunity fund.
Lubert-Adler Real Estate Fund VII was launched in 2013 and raised $575m by April 2015.
The new vehicle was first made available for existing investors in the fund, bringing in Kentucky Retirement Systems earlier this year, but has since been opened to other investors.
Both vehicles are targeting value-added and opportunistic investments, targeting gross returns of between 18% and 20%.
Lubert-Adler is targeting medium-sized apartment, retail, and mixed-use assets.
Minnesota had a made a total of $1.675bn of commitments to real estate partnerships at the end of March 2017. Most of these were for value-add and opportunistic strategies.
It has invested with Blackstone, Angelo Gordon, Colony Capital, Rockpoint, Rockwood and TA Associates.