CalPERS commits $1.9bn to US office and multifamily partnerships

California Public Employees Retirement System (CalPERS) is making several large real estate investments including a new $1.2bn (€1bn) commitment to the Fifth Street Properties partnership, and a $700m investment via Institutional Multifamily Partners.

The pension fund revealed its the investments in a board meeting document for its investment commitment meeting on 19 September, but was not available for further comment.

Fifth Street Properties is managed by CommonWealth Partners, also unavailable for comment.

CalPERS owns the vast majority of the assets placed into the Fifth Street Properties partnership, but CommonWealth has investment discretion on investments in the venture.

Fifth Street Properties’ strategy is to invest in major office buildings in the US, which mostly involves buying existing large properties, and part of the strategy is to put capital into value-add assets.

CommonWealth is an investor in office assets in many markets around the country, and its current portfolio includes properties in markets such as New York, Los Angeles, San Francisco, Chicago, Denver and Washington DC.

The new commitment to Fifth Street Properties was the largest of several new investments through existing partnerships that are now being disclosed by CalPERS.

The fund also revealed it was committing $700m to be invested via Institutional Multifamily Partners — a partnership between the Californian pension fund and General Investment & Development.

The multifamily investment strategy is to primarily to buy core apartments in several major markets in the US. Some of the partnership’s deals have included investing equity into developments for a build-to-core strategy.

Institutional Multifamily Partners seeks to invest capital into a variety of US markets including areas like San Francisco, New York, Denver and Southern California.

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