Nevada Public Employees Retirement System has under contract three new core separate account real estate acquisitions with a total purchase price of $287m (€250.6m), according to the US pension fund.
All three aquisitions were sourced by manager Invesco Real Estate.
The largest of these transactions is the $166.7m planned purchase of the 217-unit 1000 Jefferson apartment complex in Hoboken, New Jersey. Clarion Partners is the seller.
This transaction will produce a 5.1% going in cap rate (expected initial return). The complex is 95% occupied.
The pension fund is also nearing a close on the $62.2m purchase of 1400 Veterans medical office building in Redwood City, California. The initial return on this deal is projected to be 6.8%.
The final deal through Invesco is the $58.1m purchase of Tyger Ridge in Duncan, South Carolina. This is a two-building industrial property that is fully leased and is projected to deliver a 5.6% going in cap rate.
The planned purchases are part of up to $400m of planned investments in real estate by Nevada PERS during 2026, in accordance with its decision to increase its targeted allocation for real estate from 6% to 10%.
All of the capital for this strategy will be invested in separate account transactions managed by Invesco and AEW Capital Management.
Nevada PERS wants to invest in un-levered core assets with the two managers. This is mostly through industrial, retail, and apartment assets.
Invesco runs a portfolio for the pension fund with a current value of $1.5bn with an additional $2.2bn available to them for future investment.
AEW manages 31 assets for the pension fund valued at $2.5bn with another $1.2bn that could be invested in the future.
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