Consultant Led Private Real Estate Allocations in Q3 2024

In recent months, real estate has continued to attract significant attention from institutional investors, with consultants playing a crucial role in shaping these allocation strategies. Across public pension and retirement systems in the U.S., substantial commitments have been made toward a variety of real estate funds, indicating an ongoing pursuit of yield and diversification within the sector. Major consulting firms, including The Townsend Group, StepStone Group, Hamilton Lane Advisors, and others, have been at the forefront of steering capital into property investments, from core assets to distressed opportunities.

For example, The Townsend Group facilitated $2.5 billion in real estate allocations, including a notable $1.1 billion commitment from the New York State Common Retirement Fund to various real estate strategies. Similarly, Florida State Board of Administration directed $901 million toward real estate investments across several funds, showcasing the breadth of interest in the sector. These examples highlight a clear strategic focus on real estate among institutional investors, driven by consultants seeking to capture opportunities amid evolving market dynamics.

While the involvement of specific consultants in these investment decisions is not always explicitly confirmed in public documents, it is assumed that they provided guidance or assistance based on their role as private equity or general consultants for the respective institutions.

In this article, we break down the largest public pension allocations to real estate investments from top consultants for the third quarter of 2024. By the end of this list, you’ll have a deeper understanding of which consultants are driving the largest commitments to the real estate sector.

1. The Townsend Group: $2.5B

New York State Common Retirement Fund: $1.1B

  • Ares European Property Enhancement Partners IV: 355,000,000
  • Ares European Property Enhancement Partners IV Co-Investment: $110,000,000
  • Oaktree Real Estate Opportunities IX: $200,000,000
  • BentallGreenOak Asia (USD) IV: $300,000,000
  • KKR Real Estate Partners Americas IV Co-Investment: $150,000,000
  • OPC Fund I: $10,400,000

Florida State Board of Administration: $901M

  • CRC Single Investor Fund XIX: $125,000,000
  • Starwood Distressed Opportunity XIII: $150,000,000
  • Core and Value Advisors LLC REPIMAC Lender: $251,000,000
  • Heitman Montecito III: $18,300,000
  • Heitman Crescent BTR: $7,500,000
  • AEW Partners Real Estate Fund X: $100,000,000
  • Carlyle Realty Partners X: $150,000,000
  • Kennedy Lewis Residential Property Income : $100,000,000

Virginia Retirement System: $195M

  • Affinius US Eagle Rock Real Estate Fund: $45,000,000
  • Carlyle Realty Partners X: $150,000,000

Ohio Police and Fire Pension Fund: $150M

  • Fairfield US Multifamily Value Add Fund IV: $75,000,000
  • WCP NewCold III: $75,000,000

Kansas Public Employees Retirement System: $85M

  • Ventas Life Science & Healthcare Real Estate Fund: $85,000,000

Los Angeles Fire & Police Pension System: $80M

  • Jadian Real Estate Fund II: $40,000,000
  • WCP NewCold III: $40,000,000

2. Grosvenor Capital: $325M

Teacher Retirement System of Texas: $325M

  • GreenPoint REPE Fund I: $75,000,000
  • Temerity Strategic Partners Fund: $100,000,000
  • SFR JV-3: $150,000,000

3. JANA Investment Advisers: $271M

Rest Super: $271M

  • Metrics Credit Partners Real Estate Debt Fund: $271,000,000

4. Hamilton Lane Advisors: $270M

New Jersey Division of Investment: $250M

  • Bain Capital Real Estate Fund III: $250,000,000

Santa Barbara County Employees' Retirement System: $20M

  • Hillwood US Industrial Club VII: $10,000,000
  • Stonepeak Real Estate: $10,000,000

5. Meketa Investment Group: $240M

District of Columbia Retirement Board: $100M

  • Carlyle Realty Partners X: $100,000,000

San Diego City Employees' Retirement System: $75M

  • Sabal Debt Opportunities Fund III: $25,000,000
  • CBRE U.S. Core Partners: $50,000,000

San Joaquin County Employees Retirement Association: $50M

  • SROA Capital Fund IX: $50,000,000

Newport News Employees Retirement Fund: 15M

  • Berkeley Partners Value Industrial Fund VI: $15,000,000

6. RVK: $185M

Montana Board of Investments: $150M

  • Walton Street Real Estate Debt Fund I: $150,000,000

Vermont Pension Investment Committee: $35M

  • IPI Partners Fund III: $35,000,000

7. StepStone Group: $165M

State of Wisconsin Investment Board: $90M

  • High Street Real Estate Fund VIII: $55,000,000
  • Penwood Select Industrial Partners VII Co-Invest: $35,000,000

Los Angeles Water & Power Employees' Retirement Plan: $75M

  • Cabot Industrial Core Fund Ill: $75,000,000

8. Verus: $140M

Kern County Employees' Retirement Association: $140M

  • TPG AG Essential Housing Fund III: $50,000,000
  • Sculptor Real Estate Fund V: $50,000,000
  • Covenant Apartment Fund XII: $30,000,000
  • Sculptor Real Estate Fund V Co-Invest: $10,000,000

9. Callan Associates: $110M

Public Employees' Retirement System of Mississippi: $75M

  • Heitman Value Partners VI: $75,000,000

North Dakota State Investment Board: $35M

  • Cerberus Global NPL Fund II $35,000,000

10. Albourne: $100M

South Carolina Retirement System Investment Commission (RSIC): $100M

  • Sculptor Real Estate Fund V: $100,000,000

11. Cambridge Associates: $72.8M

San Francisco Employees' Retirement System: $50M

  • Sculptor Real Estate Fund V: $50,000,000

University of Michigan Investment Office: $22.8M

  • Hackman Capital Partners Studio Fund: $20,000,000
  • BLG Turkish Real Estate Fund: $2,800,000

12. NEPC: $70M

Alameda County Employees' Retirement Association

  • Starwood Distressed Opportunity Fund XIII U.S. PI, L.P.: $50,000,000

Seattle City Employees Retirement System

  • Brookfield Real Estate Secondaries Fund: $20,000,000

13. Wilshire Associates, Inc.: $50M

School Employees Retirement System of Ohio (OHSERS): $50M

  • Blackstone Real Estate Debt Strategies V: $50,000,000

14. Mariner Institutional: $10M

Dallas-Fort Worth Airport Board Retirement Plan: $10M

  • Sabal Strategic Opportunities Fund II: $10,000,000

15. CAPTRUST Advisors: $5M

City of Fort Lauderdale Police & Firefighters' Retirement System: $5M

  • Agamerica Income: $5,000,000

Capitalize on Consultant-Driven Private Real Estate Allocations

The private real estate allocations in Q3 2024 underscore the growing significance of real estate as a key asset class for institutional investors seeking stability, yield, and diversification. From core investments to distressed opportunities, consultants have been instrumental in steering clients toward funds that align with their investment objectives. As market conditions continue to shift, real estate remains a resilient and attractive option, reinforcing its role as a cornerstone in the strategic portfolios of public pension and retirement systems.

To explore more consultants and their private real estate allocations, book a demo of Dakota Marketplace!

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Written By: Koncheng Moua, Director of Data Management and Strategy

Koncheng Moua is the Director of Data Management and Strategy at Dakota.

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