CalSTRS' headquarters will be located within Raley's Landing, a mixed-use community comprised of commercial space, restaurants, a hotel, housing and recreational opportunities on the banks of the Sacramento River. The development furthers the Sacramento Riverfront Master Plan, a key component of the city's broad redevelopment and revitalization efforts.
CalSTRS' began its search for a place within which to consolidate its growing operations about two years ago. Some 35 regional sites were examined. The retirement systems' employees are currently housed at three separate facilities. The Raley's Landing site was chosen for the consolidation because of its ability to support construction of "a modern, efficient work space" and for "the investment value provided by building in the burgeoning area."
As planned, the 14-story office tower will sit atop a five-level parking structure. The building's design incorporates high-performance building systems and water conservation measures as part of an effort to have the building achieve a "Silver" LEED rating from the US Green Building Council.
As part of that goal, the building also will feature energy-efficient glazing and be oriented in the east to west direction to maximize access to natural light and to minimize direct solar heat gain. The cost of construction is estimated at between $176 million and $186 million. The estimated savings due to sustainable construction and energy-efficient features is estimated at $1.7 million annually.
In addition to its headquarters building, CalSTRS will have room to develop two additional buildings on the site. Current plans, for which there is no development timeline, call for a seven-story building with 200,000 sf of office space, 20,000 sf of retail and parking for 617 vehicles. The other building is currently envisioned as a 17-story high-rise residential building with 150 condominiums and 300 parking spaces.
With a $142-billion investment portfolio, the California State Teachers' Retirement System is the second-largest public pension fund in the United States. It provides retirement, disability and survivor benefits to California's 776,000 public school educators from kindergarten through community college.
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