Calstrs takes 90 percent stake in LCOR

New York /
May.May 23, 2012 01:30 PM

The California State Teachers’ Retirement System is set to purchase a more than 90 percent stake in the large New York developer LCOR from Lehman Brothers, the Wall Street Journal reported. Lehman Brothers first invested in LCOR in 1999 and saw it through the recession and numerous projects, including the conversion of 25 Broad Street and Terminal 4 at JFK International Airport.

Calstrs negotiated a price of $820 million for the majority stake, which includes 14 multi-family buildings with some 5,000 apartments. As a developer, LCOR will provide Calstrs with more than existing real estate investments: it will also give the pension fund the opportunity to be on the front end of new and up-coming projects. “[LCOR will] provide Calstrs [with] the opportunity to build significant core assets on an ongoing basis,” said Timothy Works, Calstrs portfolio manager on the LCOR deal.

The pension fund is seeking to build up its real estate portfolio to $19 billion or 50 percent of its core investments, just as Lehman Brothers begins its plan to liquidate portions of its $13 billion worth of real estate assets. Calstrs has a history of investing in New York real estate developments and renovations such as 1177 Sixth Avenue and 575 Lexington Avenue (note: correction appended).  [WSJ]


Related Articles

arrow_forward_ios
Silverstein Chairman Larry Silverstein, CalSTRS CEO Cassandra Lichnock and 1177 Sixth Aveneut (Silverstien, Getty, CalSTRS)
$450M refi reveals what tenants pay at Silverstein’s 1177 Sixth Avenue
$450M refi reveals what tenants pay at Silverstein’s 1177 Sixth Avenue
1777 Sixth Avenue with CalSTRS CEO Cassandra Lichnock (Google Maps, CalSTRS)
CalSTRS deal values 1177 Sixth Ave at $860M
CalSTRS deal values 1177 Sixth Ave at $860M
25 Broad Street and renderings of interior units from Booking.com (Credit: Google Maps and Booking)
LCOR lands rental deal with Booking.com for empty condos
LCOR lands rental deal with Booking.com for empty condos
LCOR’s Anthony Tortora and the parking lot at 1517 Surf Avenue (Credit: Google Maps and LCOR)
California teachers get in on Coney Island’s redevelopment
California teachers get in on Coney Island’s redevelopment
Public pension funds looking for more exposure to high-risk real estate
Public pension funds looking for more exposure to high-risk real estate
Public pension funds looking for more exposure to high-risk real estate
This pension fund is providing L&L with equity for its Terminal Stores buy
This pension fund is providing L&L with equity for its Terminal Stores buy
This pension fund is providing L&L with equity for its Terminal Stores buy
LCOR eyes $400M sellout for condo conversion of 25 Broad
LCOR eyes $400M sellout for condo conversion of 25 Broad
LCOR eyes $400M sellout for condo conversion of 25 Broad
LCOR testing market for 308-unit condo conversion at 25 Broad Street
LCOR testing market for 308-unit condo conversion at 25 Broad Street
LCOR testing market for 308-unit condo conversion at 25 Broad Street
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...