Board replaces Barings with LaSalle after interviews of three core real‑estate finalists

The Mendocino County Board of Retirement voted Sept. 16, 2025, to replace incumbent manager Barings with LaSalle Investment Management for the county’s core real‑estate allocation after hearing hour‑long presentations from three finalists and analysis from consultant Callan.

The decision followed presentations from Barings (incumbent), Principal Real Estate Investors and LaSalle Investment Management, and a discussion led by the county’s consultant, Callan. Callan told trustees the search was intended to find a core manager to complement the county’s existing DWS allocation and to consider a future core‑plus sleeve; Callan highlighted fund size, sector weights and manager mix as the chief decision points.

Why it matters: The board’s change replaces a long‑standing incumbent and reshapes the county’s real‑estate exposure. Trustees and consultants emphasized two linked concerns: Barings’ relatively small fund size and a sizable redemption/contribution queue that could constrain new acquisitions, and personnel turnover on the incumbent team — factors that, in the board’s view, pose execution and liquidity risk if market conditions shift.

What speakers said

- Chris Berry, portfolio manager at Barings, reviewed the incumbent fund’s repositioning since 2023, recent acquisitions (including Artemis Real Estate Partners), portfolio composition and performance. Berry told the board the fund had reduced office exposure, increased residential and industrial…