Jon Petersonis a contributor to Real Estate Southern California,from which this article was excerpted.

Many of the major pension funds around the country are notinvesting in real estate the same way they did several yearsago.

"You would never see a pension fund in the old days of the late1980s and early 1990s invest directly with a real estate developer.This is something that is clearly happening today and will continueto occur in the future," says Robert Brunswick, president and CEOof Newport Beach-based Buchanan Street Partners, a real estateinvestment firm.

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