State of Wisconsin Investment Board (SWIB) has made $294m (€244m) of real estate investments and is considering $250m of new commitments, according to a board meeting report.
The pension fund paid $123m for an apartment complex in a Chicago suburb, bought a retail store in California for $48m, co-invested $23m in a Los Angeles office building, and committed $100m to industrial-focused real estate fund.
The apartment complex, known as Crossings at Danada, was acquired through a separate account managed by TGM Associates. SWIB said there was an opportunity to improve the 600-unit asset in Wheaton, Illinois.
The retail store, a free-standing Lowe’s home improvement store in Torrance, California, was bought through another separate account, managed by Deutsche Bank. SWIB said the 127,400sqft property, which is leased to Lowe’s until March 2029, was attractive due to its reliable income and location.
The $23m co-investment means SWIB is now a minority owner of Citigroup Center in Los Angeles, a 891,056sqft office tower that was sold last year for $336m by Hines to Coretrust Value Fund I, a vehicle managed by Coretrust Capital.
SWIB is making the co-investment alongside Scout Fund II, a fund managed by Hawkeye Partners. Scout Fund II is itself an investor in Coretrust Value Fund I, having committed $200m in 2015. Hines continues to manage the building.
The pension fund has committed $100m to Penwood Select Industrial Partners V, which focuses on industrial assets on the West Coast of the US. Its manager, Penwood Real Estate Investment Management, declined to comment.
SWIB told IPE Real Assets that it was a good time to invest in industrial real estate due to strong fundamentals and e-commerce trends.
According to the pension fund’s board meeting report, it is considering hiring separate account managers for a $150m real estate debt mandate and a $100m senior living real estate mandate.