CalSTRS forms JV with San Francisco’s Strada Investment Group

The California State Teachers’ Retirement System (CalSTRS) and Strada Investment Group, a vertically integrated private real estate investment and development firm, have formed a new joint venture, which they will use to invest in top-tier markets in the western United States.

CalSTRS approved an initial allocation of $300 million of equity capital to the new company, which will target a build-to-core strategy by investing in multifamily development projects, with a specific emphasis on California’s San Francisco Bay Area.

CalSTRS has made a focused effort to expand direct investments in key submarkets such as San Francisco.

In addition, the $237 billion pension fund formed three JVs for its real estate portfolio this year, investing almost $800 million.

BlackRock Real Estate advised CalSTRS on the venture with San Francisco–based Strada.