San Jose pension funds put more than $50m in real estate

Two San Jose (Calif.) pension funds have committed more than $50 million to two real estate funds, representing new manager relationships.

The first commitment was $28 million to Praedium X Middle-Income Housing — $18 million of which came from San Jose Police and Fire Department Retirement Plan and $10 million of which came from San Jose Federated City Employees’ Retirement System.

Praedium X Middle-Income Housing is a value-add fund managed by The Praedium Group, a national multifamily real estate manager. On April 4, the firm closed Fund X with more than $728 million, surpassing its initial target of $400 million to $500 million. Fund X will invest in multifamily housing in suburban growth markets, primarily in the southern and western United States. The fundraise was backed by public and corporate pension funds, insurance companies, foundations and endowments and family offices.

In addition, the two San Jose pension funds committed a total of $25 million