The New York State Common Retirement Fund (NYSCRF) has hired Bridge Investment Management to invest $600m (€513m) in US logistics real estate developments.
The single-investor Bridge Logistic Properties Develop-to-Core Fund has been established with a $600m commitment, according to the pension fund.
The fund can invest in global gateway markets, including New York/Northern New Jersey, Southern California, South Florida, Dallas/Fort Worth, San Francisco Bay Area, and Atlanta, and regional prime growth markets, such as Seattle, Denver, Portland, Austin, Boston and Houston.
Any developments would have construction loans with a loan-to-cost ratio of no more than 60% and permanent loans of no more than 50%. No individual property will have more than a 55% loan-to-value ratio.
NYSCRF is targeting a net internal rate of return of between 9% and 11% over a 10-year holding period.
The pension fund has added two apartment acquisitions to its separate account real estate portfolio totaling $180.5m, according to the pension fund.
One of the purchases was a $97.5m acquisition of the 356-unit Alexan Memorial complex in Houston through separate-account manager MetLife Investment Management.
The property was constructed in 2021 and is now 97.5% occupied.
The other purchase was for $83m to own the 142-unit Santal Thousand Oaks complex in Thousand Oaks, California. BlackRock represented the pension fund in this acquisition.
