The $2 billion pension fund will make commitments to the AEW Core Property Trust and Heitman America Real Estate Trust. The size of the commitments was not stated in the minutes. An RFP issued in August said the plan was searching for at least one manager to run $25 million to $50 million.
Cornerstone Real Estate Advisers' Patriot Fund was the other finalist.
As of Dec. 31, the pension fund had a 10.6% allocation to real estate, or about $209 million. J.P. Morgan manages about 70% of the real estate portfolio, but board members said the goal is to restructure the asset class and to bring J.P. Morgan down to about 25%, which would free up about $96 million in assets.
Investment consultant Pension Consulting Alliance assisted with the search.
Cecelia Carter, executive director and chief investment officer, did not return a telephone call for more information.