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CalSTRS JV acquires Arizona apartments for $62m

The latest joint venture fund between CalSTRS and Chicago-based Waterton Associates has reportedly acquired a 512-unit apartment complex in Chandler, Arizona.

The California State Teacher’s Retirement System and Chicago-based real estate investment firm Waterton Associates have reportedly purchased the 512-unit Biscayne Bay Apartments in Chandler, Arizona for $61.9 million (€45.4 million). The property was purchased from Falcon Southwest Development Corporation and Cargill.

Located at 300 East Warner Road in the Southeast Valley area of Phoenix, the property comprises 40 two-story buildings featuring one-, two- and three-bedroom units ranging in size from 740 square feet to 1,320 square feet, according to the report.

Waterton Resident Property Fund IX, the joint venture between CalSTRS and Waterton Associates has $330 million of equity and an investment capacity of close to $1 billion. The fund, which targets the multifamily market, is the third joint venture between the firm and the pension.

Last month, teacher pension CalSTRS announced that its real estate investments returned 33 percent for the past fiscal year. The biggest allocation shift occurred in the real estate portfolio, which rose from 7.4 percent of the total portfolio in June 2006 to 10 percent in June 2007.