By Jon Peterson
Two real estate managers based in the San Francisco Bay Area have received new commitments from the California Public Employees Retirement System totaling $1.15 billion, according to a board meeting document from the pension fund.
One of the managers receiving the commitments is San Francisco-based GI Partners. This company received two commitments totaling $750 million, while the Palo Alto-based Pacific Urban Residential received a single commitment in the amount of $400 million.
GI Partners will be investing these commitments through two investment partnerships, CalEast Solstice, which will take $350 million of new commitment, and TechCore, which has an allocation of $400 million.
CalEast Solstice will be looking to buy a variety of industrial properties in many markets across the United States. CalPERS has placed a market value on this partnership of $2.9 billion as of the end of June 2018.
TechCore, on the other hand, has a core investment strategy, and it will look to acquire technology-advantaged real estate throughout the United States, according to the GI Partners website. The property types involved in this relationship include a mixture of office buildings and industrial assets. CalPERS has set a market value on TechCore at $1.25 billion.
The commitment with Pacific Urban Residential is for the Pacific Multifamily Investors partnership. CalPERS has placed a market value on this partnership at $1.1 billion. This is a core vintage apartment investment program, and it typically looks for apartments that are at least 11 years old. The San Francisco Bay Area is one of its targeted markets.