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The Real Deal Los Angeles

Fire-police pension fund to spend $100M on multifamily, industrial assets

The move is part of LAFPP’s decision to rebalance its $663M real estate portfolio wants to sell off in secondary markets and buy up in core markets
October 05, 2018 09:10AM

AEW Capital Management CEO Jeff Furber

The Los Angeles Fire and Police Pension System wants to rebalance its $663 million national real estate portfolio, with an eye toward new acquisitions.

The pension fund instructed fund manager AEW Capital Management to buy around $100 million in new assets, and sell off older assets in secondary markets next year. The fund includes 15 assets with 3.3 million square feet of commercial space and 1,141 residential units.

The fund wants AEW Capital to buy in the 20 largest urban markets in the country. It will acquire properties in the technology, health and education sectors with a focus on industrial, multifamily and high-grade retail assets, according to IPE Real Assets.

The LAFPP administers retirement plans and health benefits for 26,000 current and former employees and beneficiaries, according to its website. Its assets total $22.3 billion.

AEW took the real estate portfolio last year when it was consolidated from two funds managed separately by Heitman Institutional Realty Advisors and Sentinel Real Estate..

In March, the Los Angeles County Employees Retirement Association — a fund representing 165,000 people — set to diversify its portfolio with a planned $50 million investment in distressed and underperforming real estate in Europe. [IPE Real Assets] — Dennis Lynch