Tuesday, June 12, 2007

The Ultimate Bagholder

This had been rumored. now fact.

CalPERS takes control of Towers high-rise project

By Jon Ortiz - Bee Staff Writer
Published 10:34 am PDT Tuesday, June 12, 2007

The California Public Employees' Retirement System has announced it is taking over the debt-ridden Towers high-rise project on Capitol Mall.

That means the 53-story luxury condo and hotel that Towers developer John Saca envisioned for the site near the Tower Bridge is dead. CalPERS is tapping Los Angles-based developer CIM Group to evaluate and develop another high rise project at the location.

My wallet is tingling.



Murst. First.


Northern Renter said...

Damn that accursed Caps Lock key.


The Dude said...

....that's because you were too excited about FIRST.

Say calm

Let the force extend through your fingertips onto the keys...Oooommmmmmm

The Dude said...

....sounds like Calpers is going to take it in the shorts; but the good news is real estate only goes up, especially in CA.

flailing forward said...

Why CalPERS is screwing around with high rises when there are casinos to be flipped is beyond me.

Northern Renter said...

The Caps Lock was on because I was busy comparing protein sequences which, as everyone knows, exist only as capital letters (unless you're a pansy and need to use three-letter codes).

But I'll take your advice



Rob Dawg said...

CalPERS "thinks" it is underweighted in Real Estate. On paper it looks like 6-8% of portfolio but their reporting is a bit difficult to decipher. I suspect it is very exposed and not just revenue but principal as well. Sadly CalPERS won't be the loser, we California taxpayers lose. I hope CR and Tanta get on this.

The Dude said...

....cuz I'm in top secret talks with the casino, that's why. I can now share that Casey is my consultant. Casey said he doesn't want a dirty penny for his services.......just wants to stand next to the slots and watch the bright shiny lights and the roulette wheel go round and round and round.

eman said...

I guess the negative rate of return on this investment will come close to matching the equity tranch mortgage backed securities they own.

Rob Dawg said...

If Casey were a protien he'd be levorotary and fourfolded to the point of being inactive and nonbinding.

[One more surprising thing you'd have probably never suspected about the Rob Dawg eh?]

Peripheral Visionary said...

It's not just CalPERS--pension funds and mutual funds, in general, but especially the former, will be the ultimate bagholders. The only justice in all of this is that it will put the specu-vestor-flippers out of business, and as the Great Credit Bubble unwinds, so too will Wall Street bonuses.

Northern Renter said...

Let's just say that that particular protein is lacking one or more domains. "Because that is my denature", as it were.


Rob Dawg said...

Gottcha. Back in the early 80s I did the first work on implantable biomaterials and discovered fibrinogen precursors while doing electron microsocopy on surface binding structures. And you thought I was -just- a rocket scientist.

ratlab said...

How's the other high-rise condo in downtown Sac going? The percentage sold out keeps fluctuating. Numbers provided by the developer have been usually rosy.

Anonymous said...

Thought you were talking about the Crisp Tower project...
I'll wait a little longer then

walt526 said...

I have no idea whether or not its a good investment for CalSTRS (where my wife has her retirement money), but this development is great for my company. We did the electrical contract on CIM's Plaza Loft project that completed last year (~$3M electrical contract) and we're currently working on the new 400,000 square foot CalSTRS headquarters (~$6M electrical contract). We have too much work going on right now (why we passed on bidding the original Towers project), but we will be looking for work in 18-24 months, I would imagine.

Not sure if its great for my wife's retirement, but it's good news for my job security if we land this project. And given the success we had on the Plaza Lofts and smooth sailing so far on CalSTRS itself, it would seem to be a strong possibility. It will be interesting to see which general contractor lands the new project (that would ultimately determine how aggressively we go after it).

YouSoSpecial said...

CalPERS does not equal CalSTRS. The California Public Employee Retirement System ($234.8 billion in assets, $19.5 billion or 8.3% in real estate)is about twenty times bigger than the California State Teachers Retirement System ($143.85 billion market value of investments, 10.61 billion or 7.38% in real estate).

The CalSTRS headquarters building currently under construction is in West Sacramento.

YouSoSpecial said...

did I say twenty? I meant two. damn those zeroes.