TRENTON, NJ-The state of New Jersey will invest a total of $300 million with two real estate funds.
The state's investment division, which is overseen by the NJ Investment Council, committed to:
- a $200 million investment in the fourth offering of Northwood Investors' real estate fund, and
- $100 million to Hammes Company Health Care's first institutional real estate fund.
Northwood, which is based in New York, is looking to raise $800 million, according to Pere News, which means New Jersey will have a 25% stake. The state of Wyoming recently committed $150 million to the fund.
According to its agreement, New Jersey will not pay any management fees. New Jersey has previously invested with Northwood's third fund and also with its Real Estate Co-Investors vehicle.
Northwood has raised $2.8 billion through its first three offerings, including $500 million in 2012. With its 'evergreen' structure, the company holds assets for up to 15 years and re-invests them. Capital is added only once per year.
Hammes Company Health Care new fund will investment in outpatient facilities around the country. The Wisconsin-based firm has developed more than 500 healthcare facilities and manages four million square feet of healthcare real estate.
According to Pere, Hammes seeks to raise $430 million for the new fund.
The investments with Northwood and Hammes are New Jersey's only commitments to U.S. real estate for 2013. The state has invested with several international property vehicles.
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