The Oregon Public Employees Retirement Fund is committing $250m (€224m) to a fund managed by DivcoWest.
The US pension fund is backing the Fund V, according to a board meeting document.
Anthony Breault, senior real estate investment officer at the Oregon Investment Council, said DivcoWest had proven to be a “strong performer” over time.
The pension fund has invested with the manager on several occasions, committing $100m to the DivcoWest Fund IV in 2014.
The manager, Breault said, has “deep access to technology and media-related tenants that occupy properties in many markets across the county”.
He added: “We look to have our value-add real estate fund managers include a strategy that our separate account managers do not pursue, and DivcoWest does that.”
According to an SEC document, the manager had a first closing on Fund V with a capital raise of just over $1bn in April.
The fund, which has a hard cap of $1.5bn, will invest in office buildings and R&D properties that have a value-add component.
Improvement strategies could include leasing up empty space, recapitalisation or improved management practices.
Limited partners in Fund V are projected to achieve a net IRR of 10-13%.
Leverage on the fund should be around 65%.
All of the capital for the fund will be invested in the US, with San Francisco, Seattle, Boston, Austin, Texas and Washington DC targeted.
The markets fit the investor’s strategy of buying in areas with strong economies, skilled workforces and substantial tenant bases that will benefit from continued economic expansion and job growth.