University of Michigan Endowment has approved two new real estate commitments totalling $60m (€49.1m) to be invested in family homes in the US.

The institutional investor said in its board meeting report that it will split the amount between Penzance’s DC Real Estate Fund and Fortus Partners’ Detroit Renaissance Real Estate Fund.

DC Real Estate Fund is Penzance’s first multi-investor fund. It had previously only managed institutional capital through joint ventures.

The fund will invest in under-valued office and multifamily assets in complex situations in the greater Washington DC region. 

It is expected that less than 25% of the fund will be in new developments.

Detroit Renaissance Real Estate Fund’s strategy is to purchase, renovate and rent a mixture of single-family and multifamily homes in the Detroit metropolitan area. It will buy under-valued homes that require renovation. 

The properties will be held for rental income but eventually will be sold in bulk through a single portfolio sale.

Michigan Endowment had a real estate portfolio valued at $987m at the end of August 2017. The portfolio represents 8.8% of its $11.2bn of total assets held.