Publications

Transactions - DECEMBER 29, 2014

To read this full article you need to be subscribed to Newsline.

Sign in Start Your Free Trial Now View Purchase Options

California pension plan completes $536m in real estate investments

by Reg Clodfelter

The $45.9 billion Los Angeles County Employees Retirement Association has completed eight investments, six core investments and two noncore, totaling $535.8 million through three of its separate account managers, according to board documents.

The largest investment, the Palazzo-Westwood in Los Angeles, was one of two core investments completed by Clarion Partners. The 350-unit luxury apartment mixed-use project was purchased for $300 million and financed using a loan for 50 percent of the purchase price. The loan is interest-only for seven years at a fixed-rate of 3.4 percent. LACERA projects a net IRR from the investment of 8.5 percent annually over an expected 10-year ownership period.

Clarion also purchased Las Cimas, an office building in Austin, for $43.3 million. The core investment was levered using a 50 percent floating rate loan with an interest rate of LIBOR plus 180 basis points. LACERA’s projected levered net-of-fee return over a 10-year hold

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?