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CHICAGO-First Industrial Realty Trust Inc. has formed a third joint venture with California State Teachers' Retirement System (CalSTRS). Known as FirstCal 3, LLC, the venture will invest $950 million in strategically located land and vertical development near coastal and inland ports.

"Sourcing competitive private capital is an important part of our strategy," says Mike Brennan, president and chief executive officer of First Industrial. "Our new joint venture will accelerate the long-term growth of our business as we acquire strategic sites and develop new facilities for our expanding customer base."

The initial investment capacity of the venture is approximately $950 million; however, it has an expansion potential of up to $1.6 billion once the initial investment level has been reached. The expected capitalization is 35% equity and 65% debt. CalSTRS has agreed to initially contribute equity up to $300 million, and First Industrial has agreed to initially contribute up to $33 million, representing a 90% and 10% equity interest, respectively. According to company documents, the initial term of the venture is 10 years, and as properties are sold, capital may be reinvested back into the fund.