New Mexico commits $45m to niche real estate

The $14.2 billion New Mexico Public Employees Retirement Association has committed $45 million to Harrison Street Real Estate Partners V, an opportunistic fund managed by Harrison Street Real Estate Capital, confirms Christina Keyes, real returns portfolio manager with New Mexico PERA.

Harrison Street’s Fund V is looking to raise $850 million to execute a strategy targeting niche real estate assets such as medical office, student housing, self-storage and senior housing/assisted living. The fund had a first close at the end of October.

According to Keyes, New Mexico PERA likes that the fund is focused on North American niche properties, and that it is targeting a steady return of 16 percent net IRR and 1.7x on invested capital over a 10-year period.

The commitment is PERA’s first with Harrison