Both projects are under construction with completion expected by first quarter 2002.
The May 7 noon announcement by Post confirms an exclusive GlobeSt.com article published Monday morning. The GlobeSt.com story reported an unnamed investor was joining Post in a new venture. Post officials would not confirm or deny GlobeSt.com's article at the time it was published.
Post now confirms, in a prepared statement, the pension fund will be contributing 65% of the project's cost while the locally based REIT will have a 35% equity stake in the two apartment ventures totaling 379 units. The project will be financed with an estimated 60% leverage.
JPMorgan Fleming Asset Management of New York is advising the pension fund on the deal.
Post will manage both apartment complexes; provide property development and leasing services; will earn market-level fees for leasing/management the ventures; and will have an opportunity to generate additional revenue, over and above its 35% investment, according to the statement.
The partners also plan to joint venture other unidentified Post projects currently being developed.
"Not only does this joint venture validate our urban infill strategy, but it is a crucial step toward self-funding our development pipeline and reinforces our commitment to find new ways to deliver value to our investors," Post president David P. Stockert says in the statement.
New York state comptroller H. Carl McCall, sole trustee of the New York State Common Retirement Fund, expects the deals with Post to benefit the fund's bottom line, according to the statement.
The one million-member, $120 billion New York State Common Retirement Fund is the second largest public pension fund in the United States, next to the California Public Employees Retirement System based in Sacramento, CA.
For related news, click on:GlobeSt.com EXCLUSIVE: Post Properties Getting a New Look
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David Wilkening
David Wilkening began his long journalism career as a police reporter for Chicago-area newspapers. He became a writer-editor for major newspapers in Chicago, Washington, Detroit and Florida. He has been a business editor, political editor and travel editor for newspapers and magazines. He tried for a while to be a political operative but did better as an adjunct college professor teaching English and journalism. He is the author of several books, both ghost-written and under his own name. He is also a widely published freelance writer who currently lives in Orlando.
