Key Takeaways
- • Heitman Core-Plus Real Estate Storage Trust secures $75m commitment from ERS of Texas, part of a $275m capital raise that includes $200m in co-investment capital, with a $2bn target from limited partners.
- • Heitman has seeded the self-storage vehicle with a 4.9 million square foot portfolio of 79 assets across 16 US states, establishing an operational foundation for the core-plus strategy before broader fundraising completion.
- • ERS of Texas deployed $460m across six US real estate funds in this allocation cycle, reflecting institutional appetite for diversified real estate exposure across self-storage, industrial, manufactured housing, and multifamily sectors.
- • The $2bn self-storage fund targets core-plus positioning, combining stabilized income generation with selective value-add opportunities in a sector benefiting from secular demographic and storage demand trends.
Summary
Heitman has secured a $75 million commitment from the Employees Retirement System (ERS) of Texas for its newly launched Core-Plus US Self-Storage Real Estate Trust, according to the pension fund's board meeting documentation. The commitment represents a portion of the broader $275 million capital raise achieved to date, which includes $200 million in co-investment capital. The fund is targeting $2 billion in total limited partner commitments and has been seeded by Heitman with a 4.9 million square foot portfolio comprising 79 self-storage properties distributed across 16 US states.
The ERS of Texas allocation reflects the pension fund's strategic expansion of real estate exposure across multiple property types and fund structures. Beyond the self-storage commitment, ERS of Texas committed an additional $75 million to Faropoint Industrial Value Fund IV, a $1 billion vehicle focused on non-core industrial assets. The pension fund also expanded its exposure to the manufactured housing sector with a $50 million commitment to Horizon MH Communities Fund III, which is targeting a $400 million final close according to SEC filings from December 2025.
Additional allocations from ERS of Texas include $35 million to Marcus Capital Partners Fund V, which achieved an $850 million final close in March 2026 and will target industrial and multifamily assets across the US East Coast. The pension fund also approved two commitments pending closing: $100 million to Realterm Logistics Fund V for non-core industrial assets and $50 million to Campus Apartment Fund III targeting student housing. In aggregate, ERS of Texas committed $460 million across six real estate funds in this allocation cycle, demonstrating institutional investor confidence in diversified real estate strategies amid a varied economic environment.
The ERS of Texas allocation reflects the pension fund's strategic expansion of real estate exposure across multiple property types and fund structures. Beyond the self-storage commitment, ERS of Texas committed an additional $75 million to Faropoint Industrial Value Fund IV, a $1 billion vehicle focused on non-core industrial assets. The pension fund also expanded its exposure to the manufactured housing sector with a $50 million commitment to Horizon MH Communities Fund III, which is targeting a $400 million final close according to SEC filings from December 2025.
Additional allocations from ERS of Texas include $35 million to Marcus Capital Partners Fund V, which achieved an $850 million final close in March 2026 and will target industrial and multifamily assets across the US East Coast. The pension fund also approved two commitments pending closing: $100 million to Realterm Logistics Fund V for non-core industrial assets and $50 million to Campus Apartment Fund III targeting student housing. In aggregate, ERS of Texas committed $460 million across six real estate funds in this allocation cycle, demonstrating institutional investor confidence in diversified real estate strategies amid a varied economic environment.
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