CalSTRS Now a Majority Owner in Fairfield Residential
Acquisition consistent with Collaborative Model framework for real estate
WEST SACRAMENTO, Calif. (May 15, 2019) – The California State Teachers’ Retirement System today announced its acquisition of the majority interest in Fairfield Residential Company LLC from Brookfield Asset Management. Brookfield retained its interest in the investment manager of Fairfield’s affiliated real estate funds. Recently CalSTRS adopted a Collaborative Model for investments across all asset classes in its portfolio. This approach supports identifying and investing in strategic opportunities, such as the acquisition of real estate operating companies like Fairfield.
“This transaction was possible because of the flexibility built into CalSTRS Collaborative Model. The result is our ability to align the real estate portfolio with a top-tier manager and long-time CalSTRS real estate partner,” said Director of Real Estate Mike DiRé. “Transitioning to majority owner was appealing for a number of reasons, including the expansion of Fairfield’s geographic footprint and the growth of its capital base to include other like-minded investors.”
CalSTRS has been a partner of Fairfield’s since 1997 and a minority owner since 2005. Currently it has over $2 billion committed with the company in develop-to-core, value add, and affordable housing strategies.
“CalSTRS majority interest in Fairfield exemplifies the CalSTRS Collaborative Model, an effort to build internal asset management capabilities through acquiring top investment talent internally or externally.”
Deputy Chief Investment Officer
“As a majority owner, CalSTRS will be able to create better investment cost efficiencies and enhance its investment execution efforts in the coming years,” said Associate Portfolio Manager Josh Kawaii-Bogue. “Going forward, real estate staff will continue to support Fairfield in investment strategies and take advantage of the company’s breadth and experience in the multifamily sector.”
“CalSTRS majority interest in Fairfield exemplifies the CalSTRS Collaborative Model, an effort to build internal asset management capabilities through acquiring top investment talent internally or externally,” stated Deputy Chief Investment Officer Scott Chan. “CalSTRS will continue to partner with best in class managers and operators as it seeks to create better alignment and reduce costs across its real estate portfolio.”
“Fairfield looks forward to building on our 20-year relationship with CalSTRS as we continue to originate and execute varied investment strategies in the multifamily space,” said Fairfield CEO Greg Pinkalla.
The California State Teachers’ Retirement System, with a portfolio valued at $233.9 billion as of April 30, 2019, is the largest educator-only pension fund in the world. CalSTRS serves California’s more than 949,000 public school educators and their families from the state’s 1,700 school districts, county offices of education and community college districts. A hybrid retirement system, CalSTRS administers a combined traditional defined benefit, cash balance and voluntary defined contribution plan. For more data, download the CalSTRS Fast Facts 2018 brochure.
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About Fairfield Residential
Fairfield is a privately-held multifamily real estate owner, operator and developer that was founded in 1985. As one of the largest vertically-integrated multifamily real estate companies in the United States, Fairfield is a leading provider of acquisition, development, entitlement, construction, renovation, property and asset management, and disposition services. Fairfield’s strategy is to utilize its extensive in-house capabilities to provide a myriad of value-added services to its investors, clients, and multifamily property owners.
Fairfield is headquartered in San Diego, CA, has operations in approximately 36 geographically diverse markets across the U.S. and employs over 1,200 people, including over 400 professionals and support staff located in the corporate and regional offices.