California Employees’ Retirement System (CalPERS) has added Rincon Partners to its roster of emerging real estate managers.

Canyon Catalyst Fund, the emerging manager programme run by Canyon Partners Real Estate, has entered a partnership with Rincon, a Phoenix-based company that focuses on multifamily and self-storage properties in southern US states.

CalPERS has been running the programme since 2012 with the aim of investing with smaller and newer real estate investment managers that might otherwise be overlooked by large institutional investors.

The partnership CCF-Rincon has acquired two multifamily assets in Arizona: Paseo 51 Apartments, a 116-unit multifamily development in Glendale, bought for $30.1m (€26.7m), and Arrive North Scottsdale, a 204-unit multifamily development, for $82m.

Rincon was founded in 2015 by former Cole Real Estate Investment executives and US military veterans and has built up $334m in assets under management.

Canyon said Rincon had a strong six-year track record through the 21 deals made since 2015 and would support its growth.

“Rincon is an exceptional addition to our emerging Mmanager programme, with a capable and proven management team and an investment strategy which both aligns with and complements our platform,” said Maria Stamolis, co-head of real estate at Canyon.

“Marking our first programmatic emerging manager relationship in Arizona, a market we are keenly focused on, we are confident in the value that this relationship will bring to both Rincon and the Canyon Catalyst platform.”

Kirk McAllaster, president of Rincon, said: “We are thrilled with the opportunity to work with Canyon through its emerging manager programme and are eager to tap into Canyon’s three decades of institutional knowledge to help Rincon scale its capabilities in our next stage of growth as a firm.

“With our first two acquisitions complete, we look forward to identifying more opportunities to invest in the rapidly expanding multifamily market here in Arizona and beyond.”

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