Teacher Retirement System of Texas is providing funding for DivcoWest Properties’ Cambridge Crossing real estate development in Boston, according to sources close to the matter.
DivcoWest this week announced it had begun work on the 45-acre, mixed-use project in the Kendall Square submarket of Boston, but neither DivcoWest nor Texas Teachers would comment on the pension fund’s involvement.
The first phase of the development will provide 430,000sqft of commercial space for science and technology tenants. Construction is commencing prior to any leases being signed.
The office/laboratory space will be the biggest component of the project, which will also include residential and retail units.
Texas Teachers is understood to be the main source of equity for Cambridge Crossing, and DivcoWest will oversee the management of the project.
DivcoWest paid $291m (€247m) in 2015 for the former railway yard, according to sources familiar with the transaction.
Earlier this year, the real estate investment manager raised its largest-ever fund. Texas Teachers is among investors in the fund, having committed $200m.
In June, IPE Real Assets reported that DivcoWest had made another investment in Boston, buying 955 Massachusetts Avenue for $66m.