UNITED STATES - New York State Teachers' Retirement System (NYSTRS) has added to its real estate portfolio by investing in an industrial commingled fund and by making several investments in debt real estate.
The pension fund has approved a commitment of up to $50m (€40m) into USAA Real Estate Company's US Industrial REIT III commingled fund, which invests in primary and secondary warehouse and distribution assets.
The fund is structured as a private real estate investment trust (REIT) with a five-year investment period and a projected net internal rate of return of 12.5-14%.
NYSTRS has also completed a number of real estate debt deals, including the purchase of a portion of an existing mortgage on the General Motors Building in New York City.
The pension fund aimed to buy a $50-75m stake in the existing $1.3bn mortgage on the 50-story class-A office building on 767 Fifth Avenue.
NYSTRS has closed on two other recent debt transactions, both requiring the pension fund to provide financing on retail properties in Chandler, Arizona.
These comprise a $29.7m first mortgage financing on the Chandler Festival shopping centre and a $18.9m first mortgage financing on the Chandler Gateway property.