New York State Common Retirement Fund (NYSCRF) has issued a $300m (β¬307.7m) commitment to Bridge Investment Groupβs latest US workforce and affordable housing fund.
NYSCRF said the commitment to Bridge Workforce and Affordable Housing Fund II, is the pension fundβs first real estate investment with Bridge Investment.
The pension fund told ΒιΆΉΣ³» Real Assets that βthe limited supply and high demand dynamics of workforce and affordable housing provide investors like the CRF with durable cash flows and low volatility across expansionary and recessionary environmentsβ.
Rachel Diller, co-chief investment officer for Bridge Investment, said: βWe are thrilled to have New York Common as a limited partner in our fund. We are dedicated to rehabilitating and preserving affordable housing for Americaβs workforce.β
Fund II will be targeted markets that are projected to have household formation growth and employment growth above the national average. This would include assets in the Sun Belt, West Coast and Mountain West ranges.
The targeted renters for the projects would be essential occupations such as teachers, policemen, firemen, healthcare professionals and public city workers that earn too much for federal subsidised housing but too little to afford market-rate housing.
The fundβs net levered internal rate of returns is in the range of 10% to 12%, according to NYSCRF.
NYSCRF said it also made a second $300m commitment to the LaSalle Property Fund. NYSCRFβs initial commitment to the core open-end US real estate fund was issued in March of last year.
declined a request for comment.
NYSCRF through a separate account with LaSalle also acquired the 238-unit The Holston apartment complex in Weaverville, North Carolina for $88.3m.
To read the latest edition of the latest ΒιΆΉΣ³» Real Assets magazine click here.
