POBA, CalSTRS invest $235 mn in two US multifamily asssets

Public Officials Benefit Association (POBA) of Korea and The California State Teachers’ Retirement System (CalSTRS) have jointly invested $235 million in two multifamily assets in the US, an official from Koramco Asset Management Co. told The Korea Economic Daily.

One asset is The Buchanan, a 15-story building with 286 units in Midtown Manhattan, New York. POBA and CalSTRS invested $160 million in the asset, expecting an 8.4% return. The current rental rate of the asset is around 80%.

The other asset is The Post Apartments in Seattle. The two institutional investors injected $75 million, expecting an 8.6% return, the official said.

The loan investment was made via a $600 million joint venture for US commercial real estate investment, which was founded in April 2021 targeting a 7% of internal rate of return. POBA and CalSTRS injected $297 million, respectively, and Los Angeles-headquartered real estate investment firm PCCP LLC invested the other $6 million. POBA made the $297 million investment through a fund managed by Koramco, and the loan maturity is three years, up to five years if extended, the official said.

POBA and CalSTRS have invested in several multifamily assets in the US via the JV. Last October, the two investors injected a combined $317.2 million in three multifamily housing facilities and a multi-asset portfolio.   

Last December, the two investors injected $40 million in multifamily assets in downtown San Jose, California. One38 Apartments, the multifamily assets, have 101 units with a 7.6% internal rate of return.

Write to A-young Yoon at youngmoney@hankyung.com
Jihyun Kim edited this article.