The money is being provided by the California Public Employees' Retirement System, commonly known as CalPERS. Newport Beach-based Buchanan Street will invest the $60 million of equity and mezzanine debt in urban infill projects.

Buchanan Street Chief Investment Officer Tim Ballard says that because his company will combine the CalPERS money with debt and equity provided by other parties, it will result in as much as $250 million being available for various investments. "The average transaction size will be $15 million to $25 million, so it's conceivable that we'll be doing a dozen or more projects," Ballard tells GlobeSt.com.

Ballard says the CalPERS/Buchanan venture will focus on building or rehabbing urban infill apartments, offices, industrial facilities and retail complexes. By doing so, the money will help to create and improve urban housing, enhance services and create more jobs for urban residents.