Arizona State Retirement, real estate developer create multidevelopment fund

The $28 billion Arizona State Retirement System, Phoenix, and real estate developer Forest City Enterprises on Friday announced the creation of a strategic partnership and $400 million multidevelopment real estate equity fund.

The fund will invest in projects in Boston, Los Angeles, New York, San Francisco and Washington, confirmed pension fund spokesman Pat Klein.

ASRS will provide 75% of the assets and Forest City will provide 25% for the venture, and the equity for the fund will be paired with conventional project financing for a total development investment of $800 million to $1 billion.

Forest City spokesman Jeff Linton did not return a phone call for comment by press time.