CalSTRS, Florida state pension fund suffer major losses on investments in Manhattan apartment complex

LOS ANGELES , September 17, 2009 () – The California Teachers Retirement System (CalSTRS) and Florida State Board of Administration pension funds have suffered major losses on Manhattan apartment complexes, IPE Real Estate reported Sept. 14.

CalSTRS wrote off its US$100 million commitment to its investment in the Stuyvestant Town and Peter Cooper Village complex. The Florida fund has placed a value of zero on its $250 million commitment.

The complex ran into difficulty transitioning from rent-controlled to market rent. Also, its owners, BlackRock Realty and Tishman Speyer Properties, bought the property in 2006, near the market peak, for $5.4 billion, using 81% debt.

The largest investor, California Public Employees Retirement System, invested $500 million. The fund had not placed a value on its investment as of the end of March.

The primary source of this article is IPE Real Estate, London, England, on Sept. 14, 2009.

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