New York State Common Retirement Fund (NYSCRF) has issued a $300m (€307.7m) commitment to Bridge Investment Group’s latest US workforce and affordable housing fund.

NYSCRF said the commitment to Bridge Workforce and Affordable Housing Fund II, is the pension fund’s first real estate investment with Bridge Investment.

The pension fund told IPE Real Assets that “the limited supply and high demand dynamics of workforce and affordable housing provide investors like the CRF with durable cash flows and low volatility across expansionary and recessionary environments”.

Rachel Diller, co-chief investment officer for Bridge Investment, said: “We are thrilled to have New York Common as a limited partner in our fund. We are dedicated to rehabilitating and preserving affordable housing for America’s workforce.”

Fund II will be targeted markets that are projected to have household formation growth and employment growth above the national average. This would include assets in the Sun Belt, West Coast and Mountain West ranges.

The targeted renters for the projects would be essential occupations such as teachers, policemen, firemen, healthcare professionals and public city workers that earn too much for federal subsidised housing but too little to afford market-rate housing.

The fund’s net levered internal rate of returns is in the range of 10% to 12%, according to NYSCRF.

NYSCRF said it also made a second $300m commitment to the LaSalle Property Fund. NYSCRF’s initial commitment to the core open-end US real estate fund was issued in March of last year.

LaSalle Investment Management declined a request for comment.

NYSCRF through a separate account with LaSalle also acquired the 238-unit The Holston apartment complex in Weaverville, North Carolina for $88.3m.

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