Massachusetts PRIM Closes First Direct Real Estate Investment

PRIM adds first real estate property to investment portfolio with $112M, 21-acre deal.

The Massachusetts Pension Reserves Investment Management Board (Mass PRIM) purchased its first direct real estate investment.

Mass PRIM closed on the 21-acre land investment through the California-based Santa Clara Redevelopment Authority.

The deal closed for $112.25 million in cash on December 21, 2016 and is projected to produce millions in long-term investment fee savings.

“By purchasing and owning this land directly rather than through an investment manager, PRIM stands to save approximately $11 million in investment-management fees over the next 20 years,” said Michael G. Trotsky, CFA, PRIM’s Executive Director and Chief Investment Officer. 

The deal is part of the PRIM Project SAVE initiative, which reduced its fees and costs by an annualized $146 million over the past five years.

DivcoWest presented PRIM with the property investment which is occupied by prime office buildings and includes a ground lease.

The company worked with PRIM on other investments, including One Kendall Square in Cambridge (Massachusetts) and 333 Bush Street in San Francisco, said Timothy Schlitzer, CFA, head of PRIM’s $6.5 billion real estate program. 

PRIM manages the Pension Reserves Investment Management (PRIT) Fund, comprised of about 10% real estate assets valued at approximately $62 billion.

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