Los Angeles-based CityView has held a first close on $100 million for its second California-focused offering, the CityView Southern California (CVSC) Fund II. A commitment from the Los Angeles County Employees Retirement System (LACERA) represents the total equity in the first close for the fund, which is targeting $200 million in total commitments.
Fund II’s strategy is to develop and acquire opportunistic urban residential and mixed-use assets located in Los Angeles, Orange and San Diego counties. The goal of the fund, which is targeting net return to investors of 14 percent to 16 percent, is to deliver workforce housing to Southern California. Individual investments are likely to range from $10 million to $35 million in equity.
With its $100 million commitment, LACERA is the lead investor in the fund, leaving the remaining $100 million to two to four potential investors, according to pension documents. CityView will co-invest 2 percent of the aggregate commitment amount of the fund’s limited partners, up to a maximum investment of $4 million.
In its reasons for committing to the fund, LACERA cited CityView’s “impressive and extensive platform to guide investments in the workforce housing sector” and noted that the investment strategy represents “a niche opportunity that would complement LACERA’s existing real estate portfolio by increasing diversification.”
In addition, the commitment marks the third investment that LACERA has made with CityView. The pension plan committed $59 million to the firm’s first vehicle, CityView LA Urban Fund, in 2007, as well as $29 million to a co-investment vehicle with the firm in 2012.