Illinois Teachers hires new RE consultant

The firm, which will administer the pension system’s $5.7 billion real estate portfolio, will replace Callan Associates.

The Teachers’ Retirement System of the State of Illinois (Illinois Teachers) has hired Courtland Partners, a Cleveland-based real assets consulting services firm, to serve as the pension plan’s new real estate consultant. Courtland replaces Illinois Teachers’ current real estate consultant, San Francisco-based Callan Associates, whose contract expires at the end of the year.

“The trustees very much valued the system's relationship with Callan, but felt that Courtland presented a vision for the future that better fit the needs of the real estate portfolio,” a spokesman wrote in an email to PERE

Illinois Teachers launched its real estate consultant search in August. As real estate consultant, Courtland will be responsible for investments and the administration of the pension’s $5.7 billion property portfolio for the next five years.

Separately, Illinois Teachers also committed $30 million to Los Angeles-based Integrated Capital, a hotel-focused private real estate advisory and investment firm, through its emerging manager program. “The board believes that this investment with Integrated Capital complement existing hospitality assets held by TRS and will help expand the portfolio,” the spokesman said of the commitment.

The emerging manager program, which was established in 2005, had allocated a total of $851 million at the end of September. 

In addition to real estate, the program invests in domestic equity, international equity and global fixed income. Currently, 20 firms are part of the program.