San Diego City Employees backs noncore Waterton real estate fund

The San Diego City Employees’ Retirement System (SDCERS) has approved a $25 million commitment to Waterton Residential Property Venture XV (Waterton XV) on behalf of its real estate portfolio, according to Nov. 3 board meeting minutes.

Waterton XV, managed by Waterton, a noncore, closed-end fund investing in multifamily assets across the United States.

The fund’s value-add strategy seeks to acquire and reposition multifamily communities in well-located, urban or suburban, U.S. markets. Targeting renters-by-necessity in the top 30 major U.S. markets, the investment strategy seeks to acquire and renovate apartment communities located in attractive markets with high barriers-to-entry and strong supply and demand characteristics. The fund seeks investments that are below replacement cost and have lower occupancy in markets with strong demographic and economic growth. Waterton XV expects to acquire 60 to 75 investments, with an anticipated average investment size of $40