Los Angeles County Employees Retirement Association (LACERA) has sold half of a $500m (€425m) multifamily real estate portfolio to an institutional investor advised by PGIM Real Estate.

PGIM Real Estate, real estate investment arm of Prudential Financial, said it had formed a joint venture with a public pension fund to acquire a 50% stake in five multifamily properties in the San Francisco Bay Area.

According to pension fund committee meeting reports seen by IPE Real Assets, LACERA is the owner of the assets.

LACERA has been investing in multifamily assets over several years through a number of accounts and single-investor funds managed by CityView.

As a result of the transaction, an unnamed investor will own 50% of the portfolio, which include: Arc Light, a 94-unit property in San Francisco; Potrero Launch, a 196-unit property in San Francisco; Berkeley Central, a 143-unit property in Berkeley; One Hundred Grand, a 166-unit property in Foster City; and Menlo Park, a 146-unit property in Menlo Park.

CityView, which specialises in multifamily projects, will continue to manage the properties.

Alfonso Munk, Americas chief investment officer for PGIM Real Estate, said: “Located in the supply-constrained San Francisco Bay Area within high-barrier submarkets with robust employment drivers, each of these properties is among the best-in-class in terms of location, amenities, interior finishes and architectural design.

“We are pleased to establish a new partnership with CityView and leverage their experience in this high-growth market.”

Sean Burton, chief executive of CityView, said: “This transaction fulfilled important strategic objectives for our client, and we think PGIM Real Estate’s investment in these assets is a validation of the strength of CityView’s investment and development capabilities, and the value we deliver to investors, communities and residents alike.”

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