SAN FRANCISCO–(BUSINESS WIRE)–DivcoWest Real Estate Services, LLC, a leading vertically integrated real estate investment firm, announced today that they have entered into a new $300 million venture with the California State Teachers’ Retirement System. The joint venture will focus on acquiring core and core plus commercial real estate assets in growth-oriented markets throughout the United States.
The venture’s investment activities will concentrate on commercial real estate opportunities in targeted markets that are characterized by strong local economies and highly qualified workforces. Another key characteristic of these markets is their substantial tenant bases in dynamic, new economy industries. Cities in five states plus the District of Columbia have been identified as target markets. In California they include San Francisco (including the greater Bay Area), Los Angeles and San Diego. Other target markets include Seattle, WA; Boston, MA; New York, NY; and Austin, TX.
“We are so appreciative for our relationship with CalSTRS and will strive to continue to deliver results to prove that we deserve the faith and trust they have shown in us as a partner.”
DivcoWest and CalSTRS have a 15-year history of investing together. Over this time, DivcoWest has put the more than $1.5 billion that CalSTRS committed into various DivcoWest-sponsored investment vehicles. DivcoWest has invested CalSTRS capital across various assetclasses, return profiles, and investment structures, including commingled funds, joint ventures and separate accounts.
Mike DiRé, director of real estate at CalSTRS, said, “We continue to commit capital to DivcoWest not only because of our partnership’s financial success, but because they’ve earned our trust over a long period of time. They’ve built their professional management style on transparency and integrity—which is especially significant to CalSTRS, as we’re a public pension fund. We benefit from DivcoWest’s expertise and leadership in providing and managing commercial space to the innovation and technology communities.”
Don Palmieri, portfolio manager in real estate at CalSTRS added, “In addition to an outstanding investment return history, DivcoWest’s deep knowledge and expertise in their target markets, excellent relationships with innovation and technology leaders and the strength and quality of their team make them an ideal partner for CalSTRS.”
Stuart Shiff, founder and CEO at DivcoWest, added that: “We are so appreciative for our relationship with CalSTRS and will strive to continue to deliver results to prove that we deserve the faith and trust they have shown in us as a partner.”