Florida State Board of Administration, Tallahassee, plans to hire Altus Group or Real Estate Research or both for appraisal management services for real estate and alternative investments, depending on the outcome of negotiations, said Dennis D. MacKee, FSBA communications director.
“We are going into negotiations with the intention of coming to terms,” Mr. MacKee said. “It's our intention is to hire one or both of them” for one of the services or for both services.”
The board issued an RFP in January.
Duff & Phelps is the incumbent for real estate appraisal management administration. Its contract expires March 31. Murray Devine, incumbent for alternatives appraisal management, has a no-term contract. Both companies were allowed to rebid.
Duties of an appraisal management administrator include searching for and selecting independent appraisal firms.
FSBA oversees $162.3 billion in assets, including the $132.1 billion Florida Retirement System defined benefit plan, which had $10 billion in real estate and almost $13 billion in alternative investments; the alternatives investments consisted of $6.6 billion in private equity and $6.3 billion in hedge funds and other opportunistic strategies. The values are as of Feb. 22.
Mr. MacKee said the board has no time frame for completing the negotiations.