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Florida Real Estate Market

Florida SBA Boosts Real Estate Investments with Significant Q4 Commitments and Future Pacing Plan

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The Florida State Board of Administration (SBA) has significantly expanded its real estate portfolio, committing nearly $1 billion in the fourth quarter of 2025 and setting an ambitious $2.1 billion pacing plan for fiscal year 2026. These strategic investments span various sectors, including industrial, residential, and healthcare properties, primarily through partnerships with major investment managers.

Key Takeaways

  • Florida SBA invested $963.6 million in U.S. real estate during the fourth quarter of 2025.
  • A pacing plan of up to $2.1 billion has been set for fiscal year 2026, with $1.2 billion allocated for core assets and $900 million for non-core sectors.
  • Investments are diversified across property types, with a positive outlook on industrial and medical office sectors, and a cautious approach to commercial office assets.
  • The SBA’s real estate portfolio currently represents 9.52% of its total assets, below the long-term target of 12%.

Fourth Quarter Investment Surge

In the final quarter of 2025, the Florida SBA allocated $963.6 million to its U.S. real estate holdings. Notable investments include $331.8 million for the Lehigh 309 Logistics development in Pennsylvania, a joint venture with Panattoni represented by MetLife. The fund also invested $120.6 million through an Invesco separate account for the construction of the Inverness apartment project in Colorado, slated for completion in 2027. Additionally, $174 million was invested in a portfolio of manufactured housing assets across California, Ohio, Washington, and Georgia, with Invesco managing the transaction. A $200 million commitment was made to the GID Mainstay Fund, an open-ended core-plus apartment fund. The SBA also acquired medical office buildings in Texas and Utah for $37.2 million, managed by Heitman, and made a $100 million co-investment in the Landmark Real Estate Partners Sunshine Co-Investment Fund for real estate secondaries.

Fiscal Year 2026 Pacing Plan

Looking ahead to fiscal year 2026, which began July 1, the Florida SBA has established a real estate pacing plan of up to $2.1 billion. This allocation is divided into $1.2 billion for core assets and $900 million for the non-core sector. The SBA primarily utilizes separate account managers for core stabilized assets and build-to-core developments, while also investing in funds and co-investments globally for non-core exposure. The fund maintains a diverse allocation strategy, favoring apartments, manufactured housing, build-to-rent single-family homes, and student housing. The industrial and medical office sectors are viewed positively, while commercial office assets are approached with caution.

Diversified Investment Strategy

Recent investments highlight the SBA’s diversified approach. Through separate accounts with Invesco Real Estate, Heitman, and MetLife, the fund has deployed $365.4 million. These include equity investments in apartment complexes like Ashton at Dulles Corner in Virginia ($150.7 million) and student housing projects such as The Indy in Georgia ($63.7 million). The SBA also invested in single-family rental projects in Florida ($43.9 million), logistics centers in California ($35.3 million), and medical office buildings in Rhode Island ($36.3 million). Further diversification is seen in the acquisition of a self-storage property in New York for $31 million, also with Heitman.

The Florida SBA’s real estate portfolio is currently valued at $21.1 billion, representing 9.52% of its total plan assets. This weighting is below the long-term target allocation of 12% for the asset class, indicating potential for continued investment and growth in the sector.

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