The California State Teachers’ Retirement System (Calstrs) has bought out Lehman Brothers’ majority stake in Lcor, the developer that has remade areas in Montgomery County, Fairfax County and other parts of the Washington region.
The more than 90 percent stake fetched more than $820 million.
The purchase was made in concert with management at Lcor, based in Berwyn, Pa., according to a statement issued by both companies. Lcor has offices in Bethesda and manages more than 7,400 residential units and 7.7 million square feet of commercial space, and it owns a stake in more than 5,000 units.
“We are extremely pleased to partner with such a quality company of experienced real estate professionals, and look forward to capitalizing on the substantial growth potential of this enterprise,” said Timothy Works, Calstrs’ portfolio manager, in a joint statement.
Lcor and Calstrs have worked together previously on multifamily investments, according to Peter DiLullo, Lcor chief executive and president. “Our partnership with Calstrs provides a solid foundation for growing our portfolio and executing on well-positioned, complex development opportunities, a business in which we have excelled over the last 30 years,” he said.
“We are eager to expand our Calstrs relationship from one that was strictly centered on residential assets to one that now includes every aspect of our business,” he added.
The Lcor deal is the second major Washington-area real estate sale Lehman Brothers has made recently. Last year it sold its 78.5 percent stake in Monday Properties’ 3 million-square-foot portfolio of Rosslyn office buildings to Goldman Sachs for $1.3 billion. Lehman was also a major financier of District-based Monument Realty before filing for bankruptcy.
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