Three pension funds have co-invested a total of $25 million with New York Life Insurance to provide mezzanine equity financing to property developers in selected markets.
Officials with the $4.7 billion Los Angeles City Employees Retirement System and the $2.7 billion Milwaukee Employes Retirement System confirmed they are co-investors in the partnership. The $2.6 billion BP America Retirement Trust, Cleveland, is believed to have invested, but fund officials did not return telephone calls seeking confirmation. The pension funds' investment will be matched with $25 million from New York Life, sources said.
Greystone Realty, a wholly owned subsidiary of the insurer, will serve as adviser to the partnership. The partnership was put together by real estate consultant The Townsend Group. Targeted property types include luxury garden apartments, retail power centers, bulk warehouse and distribution facilities and build-to-suit office projects.