Tennessee Consolidated Retirement System (TCRS) has committed $100 million to JP Morgan Asset Management Sunbelt Residential Development Fund, according to a recent investment report.
JP Morgan Asset Management Sunbelt Residential Development Fund is a closed-end, commingled fund. The fund strategy is to develop, lease-up and sell core multifamily properties in select suburban and inner suburban submarkets in the U.S. Sun Belt.
TCRS noted that the development strategy is riskier than a renovation strategy because the development risks are mitigated by maximum price contracts, which protect against cost overruns, and by lease-up of completed units, while other sections of the property remain under construction.
The fund is backed by a strong sponsor with a substantial U.S. presence. TCRS has a more than 20-year existing relationship with the manager.
