CalPERS Earmarks $280M for Urban Real Estate Investments

The pension fund's Board conditionally approves the investment into CIM California Urban Real Estate Fund LP. Including a September 2000 investment of $125 million, CalPERS investment in the fund of Hollywood-based CIM Group LLC could now reach $405 million.

Most of the money invested in 2000 is being spent in California cities including Brea, Los Angeles, Sacramento, San Jose, and West Hollywood. CIM will use up to 40% of the new capital to diversify the portfolio with investments in other metropolitan areas including Washington, D.C. and Boston. A source at CalPERS tells GlobeSt.com the funds will be distributed sometime in the next few months, when negotiations with CIM are complete.

At the end of last year, CIM had 33 projects underway, including a number of redevelopment sites in California. The firm has redeveloped sites in San Diego's Gas Lamp District and has begun work on redeveloping a historic office structure at 9th and Flower in Downtown Los Angeles for residential and retail use. Adjacent that site, CIM also will develop a site for Ralph's Supermarket, marking the first major supermarket in that area in decades.

CalPERS is the nation's largest public pension fund with assets totaling $131 billion. The System provides retirement and health benefits to 1.3 million State and local public employees and their families. "CIM's redevelopment efforts in urban areas have helped communities and produced lucrative returns for our investment portfolio and our members," said Sean Harrigan, President of CalPERS Board of Administration.