Calif. Teacher Pension System Secures $992M for Mixed-Asset Portfolio

The 17 properties span seven million square feet across seven states

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The California State Teachers’ Retirement System (CalSTRS) has secured $991.8 million in financing for a 17-property mixed-asset portfolio that spreads across seven states.

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The 10-year, fixed-rate loan was provided by New York Life Insurance Company, according to JLL, which announced the agreement and arranged the financing for CalSTRS. New York Life Insurance Company, CalSTRS and JLL did not immediately respond to requests for comment. 

The portfolio spans more than seven million square feet with five office assets, nine industrial properties and three multi-housing assets. They are located in California, Arizona, Texas, Tennessee, Georgia, Virginia and Massachusetts.

The properties are leased to tenants from varied industries, including financial services, media, software, government, law, e-commerce, and healthcare, and more. 

Last week, CalSTRS CEO Jack Ehnes announced that he will postpone his planned September retirement until the end of June 2021 at the request of the Teachers’ Retirement Board. The move will help ensure the retirement fund system can maintain its focus and respond to the coronavirus crisis.

With more than 964,000 members, CalSTRS is the largest educator-only pension fund in the world with approximately $246 billion in assets, and it has been active with different asset classes around the country. For example, in December, CalSTRS and Beacon Capital Partners secured $240 million from PGIM Real Estate Finance to acquire a 780,000-square-foot Bank of America Tower in Houston.

JLL’s Kevin MacKenzie, Bruce Ganong and Brian Torp represented CalSTRS in arranging the loan with New York Life Insurance Company. JLL’s Spencer Bergthold, Sam Godfrey, Bercut Smith and Andie Fezell also assisted with the transaction.