Panattoni and CalSTRS Form $1 Billion Joint Venture
Monday, January 10th 2011
Sacramento, CA–Panattoni Development Company and California State Teachers’ Retirement System (CalSTRS) have formed a $1.15 billion equity joint venture to seek industrial and commercial real estate opportunities. The agreement includes a built-in capacity to increase the size of the capital. To seed the venture, Panattoni is contributing core assets. The JV is being named PanCal.
Carl Panattoni, Chairman, said, “We expect to see an increasing number of exciting opportunities in the near future. The joint venture will focus on bulk industrial, build-to-suits, value add, and core opportunities in the U.S. and Canada.”
Principal Real Estate Investors and Eastdil Secured served as advisors to CalSTRS and Panattoni respectively in the formation of the joint venture. Moving forward, Principal Real Estate Investors will continue to serve CalSTRS in an advisory role as part of the joint venture agreement. When asked about the transaction, Steve Silk of Eastdil Secured responded, “It is nearly impossible to amass a portfolio of this size and quality of industrial assets.”
For Panattoni, the JV adds a very competitive capital platform to finance opportunities. For CalSTRS, it provides the opportunity to partner with a developer with deep experience in the U.S. and in Canada.
Carl Panattoni added, “The PanCal JV accomplishes a lot for our firm. First, it recapitalizes many of our existing projects. It also provides a significant source of capital with a great partner, permitting us to take advantage of the market opportunities that are presented to us.”
Panattoni will be devoting considerable time and effort to the growth of PanCal, but will also continue to own and manage assets as well as pursue opportunities independent of the joint venture.
Panattoni Development Company is a privately held, full service development company founded in 1986. Since 2005, the firm has completed 75 million square feet of space worldwide. Panattoni has developed industrial, office and retail facilities in more than 200 markets. The firm is headquartered in Sacramento, California, and maintains 26 offices throughout the United States, Canada and Europe.