Chicago Firefighters’ Pension Commits $55M to Three Value-Add Real Estate Funds

The Firemen’s Annuity and Benefit Fund of Chicago approved $55 million in commitments to three real estate funds, adding value-add and middle-market strategies as its existing core property portfolio continues to post modest returns.

The largest commitment, $35 million, went to Crow Holdings Realty Partners Fund. Dallas-based Crow Holdings targets U.S. value-add investments, emphasizing industrial and multifamily properties alongside manufactured housing, convenience retail, self-storage and student housing.

FABF also committed $10 million to Arc Capital Partners Fund II. The Los Angeles manager pursues middle-market value-add opportunities through recapitalizations, rescue capital and direct investments.

A further $10 million went to Belay Real Estate Ventures Fund IV, managed by Los Angeles-based Belay Investment Group. Its strategy targets small- and middle-market transactions, including off-market opportunities, in supply-constrained U.S. markets and sectors supported by local demand.

Trustees approved the allocations in late August following recommendations from investment consultant Callan and pension investment staff, according to the supplied account of recently released board minutes.

The $1.7 billion pension reported $44.7 million invested in core real estate and another $81 million in real estate investment trusts. The new commitments equal approximately 3.2% of total pension assets.

The core real estate program returned 0.4% for the year ended June 30, while its three-year return remained below negative 3%, according to the supplied figures.