San Diego City Employees weighs $25m investment in noncore real estate fund

The San Diego City Employees’ Retirement System (SDCERS) is considering a commitment of $25 million to Sares Regis Multifamily Value-Add Fund IV, according to an investment meeting agenda for Sept. 8.

Sares Regis Multifamily Value-Add Fund IV is a private, noncore real estate fund managed by Sares-Regis Group. The multifamily fund uses a value-add approach to reposition existing apartment communities in the western and southwestern U.S.,  through cosmetic upgrades.

A fundraising target was not disclosed for Fund IV, however, the previous fund in the series completed its final close in November 2019 with $328.2 million in commitments.

SDCERS said its allocation to noncore real estate is underweight, and its exposure to the multifamily sector and the western U.S.  is also lower than the benchmark. The investment would help to reduce that noncore allocation unde