First Industrial Expands JV With CalSTRS

First Industrial Realty Trust, a Chicago-based real estate investment trust, has expanded its joint venture with the California State Teachers' Retirement System to $1.6 billion from the $950 million capacity originally planned in 2006.The venture invests in land and developments in markets that are seen as benefiting from developments such as "supply chain reconfiguration, international trade, demographic trends, and economic expansion." The venture invests across North America and has an initial term of up to 2016, the REIT said. CalSTRS has put in an additional $200 million in equity, making for a 90% equity interest in the venture, and the REIT has put in an additional $22 million, First Industrial reported. New credit facilities of $500 million have been obtained from WestLB AG, the lead lender on the transaction. The target for the venture is to use 35% equity funding and 65% debt funding. The REIT is managing the venture and receiving management fees.