CalSTRS pledges $100 million to joint real estate venture targeting California retail sites

CalSTRS is making an initial $100 million commitment in a joint venture with real estate developer Primestor Development to invest in urban retail properties in underserved California communities, confirmed Ricardo Duran, spokesman for the $154.8 billion pension fund.

The commitment has the potential to grow to $250 million, Mr. Duran said.

The California State Teachers' Retirement System, West Sacramento, is making the commitment through its Community Retail Development Fund managed by Sarofim Realty Advisors.

The strategy for the joint venture is to create what it hopes will become a stabilized, core asset, Mr. Duran said. The idea is to develop the project to avoid the high prices of buying core assets. Included in the deal is the development of a community shopping center in South Gate, located seven miles southeast of downtown Los Angeles.