CalPERS Shifts $1B Apartment Investments Mandate from BlackRock

October 5, 2010 ( - Advancing its real estate restructuring plan, the California Public Employees’ Retirement System (CalPERS) announced the consolidation of its entire core multifamily apartment portfolio under a single partner.

GID Investment Advisers LLC, an affiliate of The General Investment & Development Companies (GID), which has managed Windsor Realty Fund III LP for CalPERS since January 1998, also will now co-invest in and manage the Western Multifamily LLC. BlackRock Realty Advisors had managed the Western Multifamily LLC for CalPERS since 1998.   

The announcement said the new venture will consist of 57 apartment communities with 14,674 units in 13 states with a net asset value of approximately $1.1 billion.  

“By consolidating our core multifamily portfolio under a single partner/manager, we anticipate lower costs, improved efficiency and enhanced performance as we reposition our real estate program for long-term growth,” said Ted Eliopoulos, CalPERS Senior Investment Officer, Real Estate, in the announcement.  

CalPERS began reviewing relationships with investment managers of its real estate holdings after its $500 million investment in the Stuyvesant Town and Peter Cooper Village apartment complex in New York City went sour (see CalPERS Writes Off Stake in Big Apple Apt. Complex).