Calpers has terminated a contract involving a real-estate project for Sacramento’s tallest office tower.
Sept. 17, 2019 5:26 pm ET
California’s public worker pension system is in talks with Houston-based Hines to take over a beleaguered real-estate project in its hometown of Sacramento. Calpers is terminating its contract with real-estate firm CIM Group, according to people familiar with the situation. Hines, a real-estate investment development firm, will likely take over the project, the people said.
Sacramento officials had cheered the pension fund’s decision last year to move forward with CIM’s plan for an office-condominium-retail complex that would have been Sacramento’s tallest tower. The $381 billion pension fund, known by its nickname Calpers, abandoned a previous development plan for the same site in 2007 and it has sat empty for more than a decade. A memo prepared for Calpers by real estate consultant RCLCo was critical of CIM’s performance. The parcel at 301 Capital Mall is located along the road that runs between the California State Capitol building and the city’s iconic Tower Bridge. CIM said in a statement that Calpers approached it in 2007 to help with the parcel after the pension fund parted ways with a previous developer. “We at CIM believe the project we and CalPERS created is a good solution for the site, albeit not the only solution,” the statement said. Write to Heather Gillers at firstname.lastname@example.org and Dawn Lim at email@example.com
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