New York State Teachers’ Retirement System has provided approximately 30% of the entire capital raised for a fund managed by Penwood Real Estate Investment Management.
The pension fund told IP Real Estate it committed $75m (€69.4m) to the Select Industrial Partners IV fund last month.
Penwood, which said it would not comment on its investors, is looking to raise $250m for the fund. With leverage, total capitalisation for the fund will be $500m.
The fund will invest in the major global gateway markets of Southern California and the Port of New York and New Jersey. For its previous funds, Penwood has mostly invested in Southern California.
John Hurley, a principal with Penwood, said the New York and New Jersey region is attractive due to its ”tremendous population density and the barriers of entry it has for new development projects”.
The target markets offer distribution access to half of the population of the US, with a drive time of one-day.
Partners IV, considered to be a value-add fund, will offer net returns in the low-to-mid teens.
The fund has a three-year investment period, started at final closing for its capital raise.
Penwood is considering a first deal for the fund, which is targeting assets in the $20-$30m range. Assets will be bought through local operating partners and include existing properties in need of refurbishment, as well as investing equity in new developments.
