The New Mexico State Investment Council (SIC) is set to vote in January on $500M in new allocations, including $300M to Bell Partners’ multifamily fund, $150M to ACORE’s CRE real estate debt vehicle, and a $50M add-on to Clarion’s industrial trust.
Bell Partners Growth & Income Fund would focus on acquiring stabilized apartment communities with light value-add potential, implementing rebranding, operational upgrades, and modest capital improvements. The fund targets at least a 9% net internal rate of return with maximum leverage of 50%. The SIC staff noted Bell’s dual role as operator and manager provides direct insight into local markets, while in-house property and construction teams allow tighter operational control.
According to a recent report by CBRE projects U.S. multifamily vacancy rates to fall to 4.9% in 2025 with 2.6% annual rent growth, while a 2025 report by Freddie Mac expects 2.2% rent growth and 6.2% vacancy, supporting the fund’s projected returns. Risks include selective greenfield development and interest-rate sensitivity.
The $50M Clarion Lion Industrial Trust add-on builds on SIC’s long-standing relationship with the fund, which dates to 2007 and prior commitments totaling $210M.
LIT invests in core and build-to-core industrial warehouses in major U.S. markets, emphasizing modern class-A facilities catering to e-commerce, logistics, and supply-chain tenants. The fund’s 90% class-A portfolio with an average age of 14 years, along with strong development returns, underpins performance, though cyclical pricing, capped non-core development exposure, and potential cooling in e-commerce demand remain key risks.
ACORE Credit Partners III would mark a $150M entry into commercial real estate debt. Founded in 2015, ACORE Capital manages $18B in assets, with partners who have originated more than $75B in loans. The firm was recently acquired by Japan’s Tokio Marine Group, which will commit $200M to ACP III, enhancing alignment while maintaining operational independence.
The fund targets floating-rate whole loans and subordinate debt in U.S. primary and select secondary markets, emphasizing value-add business plans. ACP III aims for 10–12% net returns, with quarterly income distributions of 8–10% and portfolio leverage capped at a 3:1 ratio, fitting the SIC’s private debt market strategies that focus on yield, collateral diversification, and downside protection.
Together, these allocations underscore New Mexico SIC’s dual strategy: capturing yield in a volatile rate environment, while maintaining exposure to resilient, high-quality real estate assets across multifamily, industrial, and debt markets.
