Investors - MAY 14, 2018

DivcoWest and CalSTRS form $300m venture

by Andrea Zander

DivcoWest Real Estate Services has 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 Austin, Boston, Seattle and New York.

DivcoWest and CalSTRS have a 15-year history of investing together. Over this time, DivcoWest has put more than $1.5 billion committed by CalSTRS into various investment vehicles across various asset classes, 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.” 

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