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CalPERS Loses Big In NY Real Estate Default

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Following up on that Wall Street Journal article on real estate developer Tishman Speyer's default on NY's Stuyvesant Town, the LA Times sheds more light on the losses by the California Public Employees' Retirement System. The pension fund has officially lost $500 million in "the biggest deal ever in the U.S. for a single piece of residential property." CalPERS had a 26.5% ownership in the partnership (other investors include a Florida pension fund and the Church of England) and according to the paper, wrote its stake down to zero in March. The original projection for the deal (made during the boom) was a 13.5% return over seven years. Instead, the fund's real estate portfolio has dropped by almost half. [Archive photo of Stuyvesant Town from Columbia University Graduate School of Architecture, Planning and Preservation]
· It's official: CalPERS loses $500 million on New York apartment deal [LA Times]