Texas TRS commits $150 million to Pennybacker's seventh value-add fund
The $233.5 billion pension has a 15 percent real estate target, and Pennybacker's seventh fund has no determined fundraising goal.
At a glance
Texas TRS has committed $150 million to Pennybacker Capital's seventh value-add real estate fund through its real estate allocation program.
Pennybacker Capital's seventh fund has no determined fundraising goal, so the size of the pool that TRS is joining is not yet fixed.
The CRE Finance Council's sentiment index fell to 83.3, its lowest reading since 2023 and 34 percent below its late-2024 record.
Texas TRS has committed $150 million to Pennybacker Capital's seventh value-add real estate fund through its real estate allocation program.
The pension has $233.5 billion in assets and a 15 percent real estate target, or roughly $35 billion if fully funded. The $150 million commitment is about 0.4 percent of that implied target.
Pennybacker Capital's seventh fund has no determined fundraising goal, so the size of the pool that TRS is joining is not yet fixed.
Lender sentiment at a three-year low
The CRE Finance Council's sentiment index fell to 83.3, its lowest reading since 2023 and 34 percent below its late-2024 record. All nine core questions weakened from the second quarter. In the survey, 92 percent of respondents said they expect mortgage and cap rates to weigh negatively on CRE finance businesses, and borrower demand registered net negative for the first time since 2022.
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