Pension Funds, Endowments Hunger for Real Estate Assets

Last May, the California State Teachers’ Retirement System (CalSTRS) paid roughly $800 million for a majority interest in LCOR, an investment, management and development firm whose portfolio includes 7,400 multifamily units, 7.7 million sq. ft. of commercial space and multiple development projects. In June, the California State Public Employees’ Retirement System (CalPERS) plunked down $100 million for one-third of Bentall Kennedy, a real estate investment advisor with $8.4 billion in U.S. assets under management. And in December, the Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF) agreed to pay $250 million for a 49 percent equity stake in a high-rise apartment tower at 8 Spruce Street, in downtown Manhattan, and put down another $551 million for a 70 percent stake in MiMA, a luxury mixed-use complex at West 42nd Street.  read entire article…  Author:  Elaine Misonzhnik, Senior Associate Editor.  Source:  National Real Estate Investor.