LACERA commits to real estate fund

Los Angeles County Employees' Retirement Association, Pasadena, Calif., committed $100 million to CityView Bay Area II, said John McClelland, principal investment officer-real estate for the $38.2 billion pension fund, in an e-mail.

LACERA previously committed $50 million to CityView Los Angeles and $100 million to CityView Bay Area I. LACERA also committed $29 million to a co-investment in CVBA I, Mr. McClelland wrote.

Separately, the investment board at its Sept. 12 meeting received a report on the performance of investments with Cornerstone Real Estate Advisers, one of the pension fund's real estate managers. LACERA has a $107 million investment in Cornerstone Hotel Income and Equity Fund II. On Sept. 1, the fund replaced the operator at one of its hotels, Embassy Suites Irvine, which is in the midst of a 2-year-old labor dispute over alleged wage and work hours violations. As of March 31, LACERA had suffered a roughly $14.5 million loss in its investment in Cornerstone Hotel Income and Equity Fund II.

In a memo for the Sept. 12 meeting, David Kushner, chief investment officer, said the performance “while disappointing, is not alarming” because 10 of its new hotel acquisitions are value-added investments, which are being enhanced and should result in improved performance.