The article reports that Calpers "took a hit last year when its investment in Manhattan's Peter Cooper Village and Stuyvesant Town apartment complex collapsed." It also cites other instances in which CalPERS has partnered with firms that have bought and converted rent-regulated buildings in East Palo Alto, CA and in other New York City neighborhoods, including Harlem and Manhattan's Upper East Side.
The problems associated with investments like Peter Cooper Village and Stuyvesant Town are just some of the troubles that CalPERS has suffered from the recession and the collapse in property values. As GlobeSt.com has reported, for example, a CalPERS joint venture that paid $108 million for a 25-year-old class A office property in Portland, OR in 2007 defaulted on the loan last summer. The lender, New York Life Insurance Inc., subsequently took the building back and sold it at a loss, according to the GlobeSt.com report.
Click here to read the full Wall Street Journal article.
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