New York State Teachers Retirement System is expected to make between $350m to $700m of commercial real estate debt net investment for the next five years in order to reach a 6% allocation target for the asset class.

The pension fund disclosed in a meeting document most of its recent commercial real estate debt transactions have been focused on apartments and industrial assets.

The investment plan will continue to evaluate lending opportunities in the life science sector and other high-conviction property types consistent with the real estate equity programme’s focus, NYSTRS said.

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The strategy for the pension fund’s $7.8bn commercial real estate debt portfolio, includes core private debt, core public debt and non-core private debt.

NYSTRS recently provided a $130m mortgage on a 400-unit Scout on the Circle apartment complex in Fairfax, Virginia. The US property was developed in 2020 by Combined Properties.

The pension fund’s investment consultant Callan is also evaluating infrastructure debt opportunities to further diversify the pension fund’s portfolio.

Source: Real Assets IPE

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