CalSTRS Buys Large Stake In Fairfield Residential From Brookfield

CalSTRS headquarters in West Sacramento
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Calstrs Headquarters In West Sacramento

The California State Teachers' Retirement System, better known as CalSTRS, has acquired a 65% stake in multifamily operator Fairfield Residential from Brookfield Asset Management, according to several reports.

The price of the acquisition was not disclosed.

CalSTRS is the world's largest educator-only pension fund with a portfolio valued at $227.8B. The pension giant serves more than 949,000 public school teachers across California.

This is the second time CalSTRS has bought a stake in Fairfield, a San Diego-based property management company that operates more than 38,000 units in 36 markets nationwide, Private Equity Real Estate reports. CalSTRS already owned a 25% stake in Fairfield.

Brookfield owned a 65% stake in Fairfield after helping pull the latter out of bankruptcy in 2010. Brookfield, along with CalSTRS and Fairfield's management team, paid $29M to recapitalize the company, according to reports in 2010. Brookfield also committed to an additional $150M to fund Fairfield's future investments.

In the past several years, Brookfield and Fairfield have raised three value-added funds together, totaling more than $1.3B for the purchase and renovation of multifamily properties nationwide, according to PERE.

CalSTRS and Brookfield officials did not return requests for comment on the reported transaction by press time.

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