First Industrial Forms JV With CalSTRS

First Industrial Realty Trust, a Chicago-based industrial real estate investment trust, has formed a $950 million joint venture with the California State Teachers' Retirement System.The REIT said the venture will invest in "strategically located land parcels and vertical development" in markets projected to benefit most from supply chain reconfiguration, international trade, demographic trends, and economic expansion. "Sourcing competitive private capital is an important part of our strategy," said Mike Brennan, president and chief executive of First Industrial. "Our new joint venture with CalSTRS will accelerate the long-term growth of our business as we acquire strategic sites and develop new facilities for our expanding customer base." The venture, which has an initial term of 10 years, may be expanded to $1.6 billion once the initial $950 million investment level has been reached. It is expected to be funded with 35% equity and 65% debt, with initial equity contributions of up to $300 million by CalSTRS and up to $33 million by First Industrial, the REIT reported.