(To read more on the multifamily market, click here.)

SAN FRANCISCO-AGI Capital and TMG Partners, two locally baseddevelopers, have formed a joint venture with the California PublicEmployees Retirement System to invest slightly more than $100million of equity in urban-infill housing throughout California.With approximately 75% leverage, the joint venture, Avant HousingLLC, plans to invest $400 million over the next two or three yearsand completely liquidate the JV in no more than six or seven years,TMG Partners chairman/CEO Michael Covarrubias tellsGlobeSt.com.

The goal is to produce a mid-teens IRR for CalPERS over the lifeof the joint venture. Covarrubias says the JV's investments willinclude buying land and existing properties. It might buy entitledland for apartment or condominium developments, which it would havebuilt and then sell off. It might just buy raw land, entitle it andthen sell it to another developer. It might buy run-down apartmentproperties for repositioning or conversion to condominiums.

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