The pension fund's Board has approved a $200 million allocation to the Walnut, California-based developer/homebuilder to build active adult communities in California, Colorado, Arizona and Washington.
Shea becomes CalPERS eighth partner in the System's successful housing program.
"Shea Homes has an excellent investment track record and I'm confident that they will be a good fit for our housing program," said Sean Harrigan, President of CalPERS Board of Administration. "They have built a strong reputation in the market for designing award winning communities that provide homeowners quality, value, comfort and lifestyle."
CalPERS capital will be used to develop Shea's "Trilogy" brand communities that include from 1,200 to 2,500 home sites within a golf course resort community. They are designed and developed to offer the customer a full range of amenities together with their new home, including fitness centers, ballrooms, libraries, cyber cafes, tennis courts, swimming pools and continuing education programs.
Shea currently has seven "Trilogy" communities operating in the Bay area of Northern California; in the Inland Empire and Desert areas of Southern California; in the Central Coast area of California as well as in the greater Phoenix area and in Redmond, Washington.
"Shea Homes is extremely pleased to begin a long-term relationship with CalPERS to partner in the development and construction of master planned communities primarily oriented to the Active Adult customer," said Bert Selva President and CEO of Shea Homes. "We foresee significant growth in the future as a result of this new relationship."
"The active adult marketplace is ripe with opportunity," said Rob Feckner, Chair of CalPERS Investment Committee. "We believe demand will grow as the American population ages."
Currently, 10,000 Americans turn 55 each day. The number of people between the ages of 55 and 64 is expected to increase from 24 million today to nearly 42 million in 2020.
CalPERS investment with Shea Homes is contingent upon satisfactory negotiation of terms and conditions.
CalPERS is the nation's largest public pension fund with assets totaling $177 billion. The System provides retirement and health benefits to more than 1.4 million State and local public employees and their families. For more on CalPERS, visit www.calpers.ca.gov.
Shea Homes is the largest, privately-held homebuilder in America and currently operates in California, Arizona, Colorado, and Washington. Shea Homes is an independent member of the Shea family of companies which includes J. F. Shea Co., Inc., one of the oldest and largest privately held construction companies in the country. In its more than 120-year history, Shea family members and predecessor companies have participated in some of the country's most significant construction projects, including the foundation piers for the Golden Gate Bridge, tunnels and stations for the San Francisco Bay Area Rapid Transit System (BART), the Washington, DC Metro and the Hoover Dam. For more information on Shea Homes, visit www.sheahomes.com or for Trilogy information visit www.trilogylife.com.