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 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.