Here is the scoop on the $1.85 billion sale by CalSTRS of one of its biggest industrial portfolios to a JV of Lehman and ProLogis. CalSTRS was advised by my friends at CB Richard Ellis Investors, who have a great track record with this institutional types.
According to the story, "There are 114 industrial properties in the ProLogis-owned portfolio, totaling 24.7m s.f. (0.185806m2), located in Reno, Las Vegas, eastern Pennsylvania, Chicago and Tejon Ranch in Southern California." And (as I shake my head in disbelief), the cap rate was below 6% and might have been lower had there been more California dirt involved.