LCOR, CAlSTRS Aim for $1Bln of Apartment Investments

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LCOR and the California State Teachers' Retirement System, which last year formed a venture that invested in two East coast apartment properties, are looking to build a substantial presence in the sector.

The venture, LCOR Residential Associates has $287.5 million in equity commitments, the bulk of which comes from CalSTRS. That could be leveraged into some $1 billion in investments, which would involve the development or acquisition of properties as well as condo conversions and property redevelopments. Targeted markets would include Washington, D.C., Philadelphia, New York as well as other select East-coast areas.

When the venture was formed last year, it was seeded with $100 million in equity.

The venture is developing North Bethesda Center, a mixed-use property on a 32-acre site in North Bethesda, Md., a suburb of Washington, D.C. The first phase of the property will encompass a 312-unit residential component and a 65,200-square-foot grocery store, which combined will cost $110 million to complete. The entire development will have 1,250 apartment units, 1 million sf of office space and 202,000 sf of retail space.

LCOR and CalSTRS last year paid $73 million for a vacant building at 225 E. 34^th St. that is being redeveloped into the Charleston, a 191-unit residential condominium project. Before that, it paid $61 million for Ravens Crest, a 444-unit apartment property in Manassas, Va.

LCOR, a Berwyn, Pa., developer, has had a relationship with CalSTRS since 2003.