Tennessee Retirement adds $160m for core, value-added real estate

The Tennessee Consolidated Retirement System has added $160m (€148.8m) of core and value-add real estate investments.

A début $60.75m deal through its separate account with L&B Realty Advisors has been agreed on a core office and retail property in Washington, DC.

The 50,000 sq ft PNC Dupont Circle property, at 1913 Massachusetts Avenue Northwest, was bought by L&B.

The manager, given a separate account mandate in late 2013, declined to comment.

The fully let property is leased to PNC Bank, which recently signed a new lease for 15 years.

Tennessee has also closed a $50m commitment to the Carlyle Group’s US-focused Realty Partners VII fund.

The pension fund plans to commit $50m to the CBRE Global Investors’ Strategic Partners US Value Fund VII by the middle of this month.

Targeted returns for Carlyle’s Realty Partners VII are at least a 20% gross and 16% net IRR.

Carlyle is seeking a $3bn equity raise for its fund, which will be looking at smaller deals than many of its opportunity fund competitors.

The amount of equity per transaction for the manager is normally somewhere in the range of $10m to $30m.

The fund places equity in existing properties that it can renovate and improve, as well as in new development projects.

Carlyle works with local operating partners on the acquisition of office, apartments, industrial, retail, for-sale residential, hotel and senior housing.

CBRE Global Investors, meanwhile, is looking to raise $1.5bn for Value Fund VII.

The manager will co-invest no more than $30m.

All of the capital will be invested in US office, hotels, industrial, retail and apartments.

Targeted returns for the fund are 15% gross and 12.8% net IRRs.