Tennessee Consolidated Retirement System (TCRS) is close to acquiring an apartment complex in Raleigh, North Carolina, through one of its separate account managers, Heitman. 

The pension fund confirmed to IPE Real Assets that it had approved the $48.5m (€42.7m) acquisition of 616 at the Village, but the transaction was yet to close as it was still undertaking due diligence.

The 207-unit complex was built by developer Wood Partners last year.

According to industry sources, the transaction is reflective of a growing number of US public pension funds looking to buy apartment projects in secondary markets as a way to secure assets at lower prices.

The potential sales price on 616 at the Village is $234,000 per unit. By contrast, apartments in many gateway markets along the East and West Coasts can be priced between $400,000 and $500,000 per unit, according to sources that track sales in those markets.