CalPERS approves $51.5 million investment with Johnson/MacFarlane Urban Partners.SACRAMENTO, Calif.--(BUSINESS WIRE)--March 7, 1996--The California Public Employees' Retirement System (CalPERS), Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Lakers See Lake poets star Earvin "Magic" Johnson, Jr., and real estate advisor Victor B. MacFarlane MacFarlane or Macfarlane is a surname shared by:
Johnson and MacFarlane, partners in Johnson/MacFarlane Urban Partners (JM Partners), have teamed with CalPERS to bring quality retail developments to underserved urban markets throughout the State. The partnership, named California Urban Investment Partners (CUIP CUIP Chancellor's Undergraduate Internship Program (University of California Santa Cruz) ), will focus investments in predominantly minority, urban neighborhoods within California's major metropolitan areas. "CalPERS expects to earn a far above average return on its investment," said Charles P. Valdes, CalPERS Investment Committee Chairman. "Besides receiving superior returns, we will be able to create economic opportunities for many minority-owned businesses while providing needed retail products and services to those who live in these communities." Target markets include underserved urban communities in Los Angeles, Oakland, Orange County, Riverside-San Bernardino, Sacramento, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. . In each targeted area, minorities represent a high concentration of the total population -- often more than 75 percent. Further, these communities possess an annual high purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. exceeding $50 million per square mile. The areas have severely limited retail development available. "Urban neighborhoods have been largely bypassed by retail developers and investors, creating a growing market for retail products and services," said Victor B. MacFarlane, head of the nation's largest minority-owned real estate investment firm and advisor to CalPERS. "These large underserved populations have created prime markets that will allow CUIP's targeted investments to achieve risk-adjusted returns Risk-Adjusted Return A measure of how much risk a fund or portfolio takes on to earn its returns, usually expressed as a number or a rating. Notes: This is often represented by the Sharpe Ratio. The more return per unit of risk, the better. that equal or exceed alternative real estate investments." Research shows, for example, several major grocery retailers have opened stores in long neglected urban city neighborhoods in California and metropolitan areas in other states in the last few years. These stores have realized more sales and profits than their suburban counterparts. Initially, CUIP will invest in neighborhood and community shopping centers as well as free-standing retail grocery, pharmacy and/or combination "superstores." CUIP will also encourage residents of the respective areas to participate in the creation of local retail centers that respond to community needs. This capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. will result in jobs in the construction, retail-trade and service industries. In turn, it will create opportunities for local entrepreneurs to lease retail space. "We're excited about the opportunity to help rebuild these communities," said Earvin "Magic" Johnson. "Victor and I are looking forward to working with local community groups to ensure the viability of this investment and the products and services that have become increasingly important to the quality of life of the people in these communities." The partnership is the latest California-based investment approved by the CalPERS Board. It represents .4 percent of all CalPERS' California commitments and investments, which total $12.5 billion. It represents one-twentieth of one percent of the System's $96.9 billion fund. CalPERS is the nation's largest public pension fund. The System provides retirement and health benefits to over one million active and retired members. Johnson Development Corporation is a commercial real estate investment and development firm headquartered in Los Angeles. In addition to its entire with MacFarlane Urban Retail Company, the firm currently has a joint-venture relationship with Sony Pictures Entertainment that is focused on the development of "Magic Johnson “Earvin Johnson” redirects here. For the Milwaukee Bucks center, see Ervin Johnson. Earvin Effay Johnson, Jr. (born August 14, 1959 in Lansing, Michigan), nicknamed Magic Theatres," primarily in inner-city communities. Headquartered in San Francisco, MacFarlane Urban Retail Company, L.L.C. was founded by Victor B. MacFarlane to provide retail investment and development services in underserved urban areas. MacFarlane has been an advisor to CalPERS since 1991. CONTACT: CalPERS Brad Pacheco or Pat Macht, 916/326-3991 |
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