The $1.3 billion Chicago Transit Authority Employees' Retirement System entered into a joint venture with Commercial Net Lease Realty, a public real estate investment trust, to acquire net leased retail properties, confirmed Kevin Lynch, principal with The Townsend Group, which structured the deal. The retirement system will invest $15 million in a limited liability company that will be 80% owned by the retirement system and 20% owned by CNL, said Mr. Lynch. The total committed capital will be $18.75 million, with an additional $9.5 million borrowed from an institutional lender.
Mr. Lynch claims the partnership is the first of its type because the pension fund and REIT have committed to jointly acquire and own property. Past pension fund-REIT joint ventures were done with the intent of acquiring specified property portfolios, he said.
