California State Teachers Retirement System (CalSTRS) approved seven new real estate commitments totaling $1.1bn (€978.3m) in the first half of 2024, comprising four controlled investments and three fund investments.
CalSTRS made three controlled investments in industrial assets. These investments included a $300m commitment to the Hampshire Cal Industrial JV, a joint venture managed by The Hampshire Companies; and the the same amount to the Hamilton Development Cal Relationship, a joint venture with Hamilton Development Company focused on opportunistic assets.
The pension fund also provided an additional $100m equity investment to the CP Logistics Canada Relationship, an existing joint venture with Panattoni Canada.
The fourth controlled investment was a $125m commitment to the Lineage JV, a value-add residential joint venture with Legacy Communities.
The three fund commitments included a $150m investment in PCCP Credit XI, a core real estate debt fund managed by PCCP. Additionally, the pension fund committed $50m to PCCP Equity Fund X, a fund that invests in a mix of debt and equity in an opportunistic strategy. Finally, CalSTRS invested $62m in 3650 REIT 5, a core real estate debt fund.
CalSTRS’s $1.1bn in new real estate commitments during the first half of 2024 were largely offset by $867m in asset sales during the same period.
A notable transaction was the sale of the 504-unit Canyon Rim apartment complex in San Diego for $225m. This asset had been part of the pension fund’s portfolio since 2020 and generated a 52.6% net internal rate of return and a 3.5x net equity multiple.
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