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SACRAMENTO, CA-Four real estate investment partners are getting $200 million from the California Public Employees’ Retirement to spend on urban in-fill projects in the state. The pension fund also says it has earmarked $150 million to establish a new affordable multi-family housing investment program by the end of the year.

Both actions are part of CalPERS California Urban Real Estate Initiatives program, the goal of which is to “to diversify the fund’s real estate portfolio in order to achieve greater returns,” and to “harness the investment opportunities created by the growth of California’s population and the shortage of affordable housing and general development in California’s urban locations.”

CalPERS is the nation’s largest public pension fund with assets totaling more than $158 billion. The system’s four investment partners will focus on the development and redevelopment of multifamily units, single family housing, industrial, office and mixed-use property types in urban settings. The investments were distributed as follows:

– $60 million to Buchanan Street Partners, Inc. with offices in Newport Beach and San Francisco;

– $60 million to Capri/Capital Advisors, LLC with offices in Los Angeles and Chicago;

– $40 million to Irvine, CA-based Institutional Housing Partners, Inc.; and

– a $40 million contingent investment to San Antonio, TX-based American CityVista Ltd., a partnership between Cisneros Community Ventures and KB Home. This investment is contingent upon the new start-up obtaining financial backing and support for operational and reporting processes to meet the requirements for an investment program with CalPERS.

CalPERS’ says another $50 million not yet allocated will be available to any of the pension fund’s urban in-fill partners who demonstrate satisfactory investment performance and a need for additional capital.

As for its $150-million affordable multi-family housing investment program, CalPERS expects to launch a search in August 2001 for up to three investment partners or advisers to administer the program. Selection of the partners is targeted for November 2001. The program will include projects with 70/30 and 80/20 market rate unit-to-affordable unit ratios.

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