Madison Realty Capital has reportedly received a $150m commitment from the Oregon Public Employees Retirement Fund (OPERF) for its Debt Fund III.
The deal marks the US pension fund’s first commitment to Madison and its foray into debt funds. It follows a $40m commitment into the same fund from New York State Teachers Retirement System in November of last year.
Focused on US offices and apartments, Debt Fund III is seeking 16% returns on the origination and purchase of secured senior loans, bridge loans, mezzanine debt and preferred equity investments, with terms ranging between one and three years. The fund will invest 50% of its capital in New York City and the Tri-State region, which also includes New Jersey and Connecticut.
Debt Fund III has a hard cap of $750m and Madison will co-invest up to $5m.
OPERF has also committed $17.4m to Waterton’s Residential Property Fund XI, which will fund improvements to the 250-unit Chase Knolls apartment complex in Sherman Oaks, California.
IP Real Estate first reported on the OPERF commitment.