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Unico Properties Plans Core Plus Office Fund with $35MM Commitment from Los Angeles Fire and Police Pensions

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By Jon Peterson

Seattle-based Unico Properties is out in the marketplace with a new core plus office fund. One of the new investors into the fund with a new commitment of $35 million is the Los Angeles Fire and Police Pensions, as stated by the investor in a board meeting document.

Unico Properties did not respond to phone calls and emails seeking comment for this story.

The name of the fund is the Unico Core Plus Partners. It will only be investing in office buildings with the targeted markets for this fund located in Seattle, Portland and Denver.

Core plus funds are characterized by properties that have strong income at the point in time when they are acquired. The assets usually have the opportunity to add value down the road when the rents are brought to market or a when a property is expanded.

Los Angeles Fire and Police has had a previous investment relationship with Unico Properties. This partnership between the pension fund and the investment company goes back to 2014, when an investment made by the pension fund was a $29.5 million commitment into Unico Partners I. This fund had a value-add strategy, and the pension fund had earned an 18.8 percent net IRR on this investment with an equity multiple of 1.5, as stated by the pension fund in a board meeting document.

Founded in 1953, Unico Properties is a private real estate firm offering user-centered investment, development, management and sustainability services in emerging markets across the U.S., according to the company’s web site. The Seattle-based company had formed 49 investment vehicles from core-plus through opportunistic investments, and it has invested across the western U.S., including Seattle, Portland, Denver, Austin and Salt Lake City. Today, the firm has co-invested in and is actively managing more than $3 billion of office, mixed-use and multifamily properties.