But while the investments are aimed to beef up pension plans that teachers and other public employees rely on when they retire, critics of these higher risk real estate funds say their very design ...

Blackstone reports that 55% of its $69-billion fund is invested in rental housing. The unions said in their letter that many UC workers are paying more than 30% of their salaries in rent.

Blackstone bought Clover Creek as part of a $1.7 billion acquisition of about 11,000 apartments. JRK bought the property through a new $330 million fund that invests in apartments built before 1990.

The major real-estate investor Blackstone is playing defense as tenants scrutinize its policies. This week, tenants addressed Blackstone and an investor, UC Investments, to raise concerns. A ...