CalSTRS Ends Relationship With Green Fund

Jon Peterson

The California State Teachers’ Retirement System has withdrawn as a limited partner in the Thomas High Performance Green Fund, according to the pension fund’s second quarter 2011 quarterly investment report for real estate.

Thomas Properties Group Inc. raised $180 million in equity at the end of 2007. CalSTRS was the lead investor with an equity contribution of $100 million made to the fund in October of that year. The commingled fund had a two-year investment period that ran from 2008 to 2010. There were no investments made for the commingled fund during the investment period.

According to an executive with Thomas Properties, which has offices in Los Angeles and Philadelphia, both CalSTRS and the fund manager believed it unwise to extend the Green Fund’s investment period. The executive declined to be named.

The fund’s investment strategy was to invest in high-performing green office and mixed-use buildings through both ground-up development and the purchase and renovation or retrofitting of existing buildings. The fund would seek LEED certification for each of its assets, CalSTRS spokesman

Ricardo Duran said in an email. The partnership was unable to find any suitable investments.

Thomas Properties will still use green attributes as part of its overall investment strategy in another venture it has with CalSTRS. This joint venture, TPG CalSTRS, invests in office buildings and mixed-use properties in several markets around the country. The vast majority of the assets are LEED-certified or have green qualities. CalSTRS began the joint venture with Thomas Properties in 2003 and had committed $383.8 million as of March. The last commitment of $100 million was invested in May 2010.

West Coast Commercial Real Estate News