CalSTRS bets $300M on real estate with longtime partner, Divco

The massive state teachers pension fund will look to tech-oriented properties

Los Angeles /
May.May 14, 2018 03:30 PM
Divco CEO Stuart Shiff and Waters Edge

California’s massive teachers pension fund is pumping $300 million into commercial real estate, with a focus on the tech sector.

The California State Teachers’ Retirement System is starting the venture with longtime investment partner Divco West Real Estate Services, Bloomberg reported.

Divco West has invested $1.5 billion of CalSTRS funds over the last decade and a half.

The venture will focus on commercial properties in core and core plus assets in markets in five states and Washington, D.C.

It will include “strong local economies and highly qualified workforces,” according to a press release.

In California, that includes Los Angeles, San Francisco, and San Diego. Other target markets are New York City, Boston and Austin, according to a press release.

Divco West specializes in real estate focused on the tech industry and is most active in San Jose and the San Francisco area — where it is headquartered — but has worked on a handful of properties in L.A.

It recently sold the Water’s Edge creative office campus in Playa Vista to Rockwood Capital for $190.5 million after paying Maguire Partners $132.5 million for a stake in the building. Last year it sold a two-building office complex in El Segundo to Starwood Capital for $174 million.

CalSTRS said at the end of last year it counted around 930,000 teachers as members and had a portfolio adding up to around $208.7 billion.

Earlier this month it said its unfunded liability climbed by $10 billion to around $107.3 billion, according to Bloomberg.


Related Articles

arrow_forward_ios
Mariposa on 3rd
CGI Strategies secures $41.5M loan on Koreatown apartment complex
CGI Strategies secures $41.5M loan on Koreatown apartment complex
Gov. Gavin Newsom with Doug Ose and John Cox (Getty, Twitter)
Real estate execs among challengers in Newsom recall
Real estate execs among challengers in Newsom recall
2575 E El Presidio Street and Thor Equities Chairman Joe Sitt
Thor Equities pushes into LA industrial market
Thor Equities pushes into LA industrial market
Rendering of the new Pasadena office and existing building inset. (JLL, 101 South Marengo)
Let there be light: Atlas Capital will overhaul windowless Pasadena office block
Let there be light: Atlas Capital will overhaul windowless Pasadena office block
PPIH President & CEO Naoki Yoshida and TPG Capital Partner Paul Hackwell (Linkedin, Getty)
TPG Capital selling SoCal-based Gelson’s Markets
TPG Capital selling SoCal-based Gelson’s Markets
MDT Properties Marc Tavakoli and 627-631 N. Dillon Street (Google Maps, iStock/Illustration by Alexis Manrodt for The Real Deal)
Shovel-ready site in Silver Lake trades for $3.5M
Shovel-ready site in Silver Lake trades for $3.5M
(iStock)
LA County sued over commercial eviction moratorium
LA County sued over commercial eviction moratorium
The future of San Francisco’s Oceanwide Center is up in the air again (Getty, Foster and Partners)
Contractors pull out as Oceanwide Center sale falls through again
Contractors pull out as Oceanwide Center sale falls through again
arrow_forward_ios

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

Loading...