The New Mexico State Investment Council (SIC) has announced a significant $300 million investment in U.S. multifamily real estate through Fairfield Residential, marking its first collaboration with the real estate investment firm. This strategic allocation will support Fairfield’s latest fund and co-investment opportunities as it targets value-add multifamily assets nationwide.
According to meeting documents, the investment includes a $200 million commitment to the Fairfield US Multifamily Value-Add Fund IV and an additional $100 million directed toward a co-investment vehicle associated with the fund. The Fairfield fund aims to raise $1 billion, with a hard cap of $1.2 billion, and has already secured $800 million. According to a report by Jon Peterson in IPE Real Assets, the final closing is anticipated for January 2025.
The Fairfield US Multifamily Value-Add Fund IV is structured to deliver a net internal rate of return (IRR) of 13-14 percent over a 10-year term, employing 55 percent leverage. The fund has already deployed $327 million across 14 investments, with a cap on development opportunities set at 35 percent of its committed capital to mitigate risk in the current market environment. With the California State Teachers’ Retirement System (CalSTRS) expected to contribute a significant but undisclosed sum, Fairfield’s capital-raising efforts are bolstered as it moves toward its closing target.
Fairfield Residential, founded in 1985, is a prominent U.S. multifamily real estate firm that specializes in developing, acquiring, and managing apartment communities. With approximately 42,400 units in its portfolio, Fairfield’s holdings include luxury new constructions, renovated homes, and tax-credit affordable housing in urban and suburban areas. The company, which is majority-owned by CalSTRS, benefits from substantial financial backing and a fully integrated platform that encompasses all facets of multifamily development and management.
Fairfield has recently expanded its portfolio, acquiring four multifamily communities in California and Colorado, adding over 1,300 apartment homes, and completing a new construction phase of Altitude Apartments in South San Francisco. With its Living Green® program promoting sustainability in over 100 communities, Fairfield prioritizes eco-friendly initiatives like green cleaning products and low-VOC materials, solidifying its position as a sustainable and quality living environment leader.
