By Jon Peterson
California Public Employees Retirement System is expanding its emerging manager program to the Pacific Northwest and Seattle with two of its managers, San Francisco-based Rubicon Point Partners and Sack Properties in 2019, as stated by the pension fund in a board meeting document.
The pension fund had engaged Los Angeles-based Canyon Partners Real Estate as the manager that oversees the emerging manager program. This manager calls this program the Canyon Catalyst Fund.
“Over the last three to four years, there has been a steady growth and expansion of Bay Area companies to the Pacific Northwest, and we have been studying that progression and observing tenant behavior and movements. The Pacific Northwest is a target market for the Canyon Catalyst Fund, including with respect to its investment activities with Rubicon,” says Maria Stamolis, co-head of real estate and director of Canyon Partners.
The investment strategy for Canyon will be with properties that have already been constructed. “Our investment strategy for the fund will be to focus on investing with existing assets in the value-add space,” said Stamolis.
Rubicon is based in San Francisco. This real estate investment firm declined to comment when contacted for this story. It invests in innovation driven office buildings.
For the Catalyst fund, Rubicon has $358 million committed to nine investments, as stated in a CalPERS board meeting document. The real estate manager has successfully realized five investments that produced gross investment returns of 27.5 percent IRR with a 1.54 equity multiple.
Sack Properties is also a San Francisco-based real estate manager focused on workforce housing, as written in a CalPERS board meeting document. The firm has committed to total of 11 investments totaling $280 million for the Catalyst Fund. Eight of the investments have been realized and have yielded gross returns of 17.1 percent IRR with an equity multiple of 1.32.