In this paper, we analyze the implications of combining public real estate with a direct real estate allocation. Using an actual fund rather than index data, the historic performance of blended portfolios has been simulated and the resulting risk and return characteristics analyzed. The results show that the public real estate component has been accretive to performance in blended real estate portfolios. When accounting for valuation smoothing and the non-normal characteristics of private real estate returns, we show that risk contributions were consistent with asset allocations. In addition, the blended portfolio still provided the multi-asset benefits of private real estate exposure.