Maybe all of those second-quarter reports lauding the return of Manhattan real estate convinced New York‘s Common Retirement Fund that investing in it is a good idea. (But remember how that worked out for California’s pensioners and Stuy Town?)
The pension fund, along with the Houston-based real estate firm Hines, have announced that they will invest more than $1 billion in U.S. office and medical properties. The supposed uptick in commercial property prices is the reason for their confidence: “The timing is right to reconstitute this venture and strategy,” Jeff Hines, C.E.O. of the real estate firm, said in a statement obtained by Crain’s.
Let’s hope the market can hold onto its small comeback; commercial property values in the U.S. increased 6.3 percent in May, which was the first month in six to see an increase.
The partnership aims to “develop, acquire, own and manage buildings primarily occupied by a single tenant,” according to a statement.