CalPERs hedging on Las Vegas Real Estate investment (Sacramento: lease, purchasing)

[CaliRestoration]

I actually think this is not a bad place to put money for CalPERs. A proven, revenue generating property in one of the hottest areas of the strip? Not bad.

I don't think the $1.1 billion dollar deal will magically save the fund, but it shows that they aren't making the idiotic moves they were before that cost them $11 billion during the RE crash 2007-2012.

CalPERS is betting big on Las Vegas real estate, purchasing a glitzy retail and nightlife complex on the Strip where entertainers such as Britney Spears and Jennifer Lopez regularly perform.

California’s giant public pension fund recently bought Las Vegas’ high-profile Miracle Mile Shops for a reported $1.1 billion. It’s one of the largest real estate deals CalPERS has made since the property bubble burst nearly a decade ago.

CalPERS purchased the 200-store mall, next to Planet Hollywood Resort & Casino, through a company called Institutional Mall Investors LLC. Institutional Mall, which owns 21 shopping centers, is a partnership between the California Public Employees’ Retirement System and Chicago-area real estate firm Miller Capital Advisory Inc.

After losing about $11 billion in real estate during the crash, CalPERS has largely moved away from speculative property deals and is putting more of its money into existing, leased-up shopping centers and office buildings. Earlier this year, for instance, the pension fund made one of the largest real estate investments in its history, spending a reported $1.9 billion on a New York office tower.

CalPERS’ real estate portfolio was worth $27.3 billion as of July 31. Its total portfolio is worth $302.35 billion.

CalPERS invests in $1.1 billion Las Vegas' Miracle Mile shopping center | The Sacramento Bee

[jm1982]

Interesting . Wonder what some of the speculative deals they invested in were .

People do seem to love shopping in Vegas .

[thelopez2]

Originally Posted by jm1982

Interesting . Wonder what some of the speculative deals they invested in were .

People do seem to love shopping in Vegas .

https://calpensions.com/2010/04/30/h...tate-and-lost/

[CaliRestoration]

Originally Posted by thelopez2

https://calpensions.com/2010/04/30/h...tate-and-lost/

This.

The Newhall Ranch deal is possibly one of the worst state sponsored investment projects I've ever witnessed. I knew people involved with it, and they knew it wouldn't fly even early in the planning stages.

[CaliRestoration]

Originally Posted by jm1982

Interesting . Wonder what some of the speculative deals they invested in were .

People do seem to love shopping in Vegas .

There are many in theLopez's link. Read about the Newhall Ranch deal, it will make you wonder just how stupid the old CalPERs fund managers were.

The Vegas deal looks smart on paper, but you have to wonder if it's too little too late, especially since the state is expected to bail out CalPERs to the tune of $3 billion dollars MORE per year to keep it afloat.

[jm1982]

Link was interesting . Definitely seems like they invested a lot at the height of the market .

[jw2]

Originally Posted by jm1982

Link was interesting . Definitely seems like they invested a lot at the height of the market .

CalPERS has a history of poor investments. After the money has been made on an investment, then they enter that market. They need forward thinkers, not follow the crowd thinkers.

Really what they should do, as they have a history of failure, is just turn over the management to Fidelity or some other major player. This fund is way over the head of the current clowns

[CaliRestoration]

Originally Posted by jw2

CalPERS has a history of poor investments. After the money has been made on an investment, then they enter that market. They need forward thinkers, not follow the crowd thinkers.

Really what they should do, as they have a history of failure, is just turn over the management to Fidelity or some other major player. This fund is way over the head of the current clowns

Best advice yet. Privatizing CalPERs would increase its returns, and reduce reliance on state contributions to keep it solvent.

This fund has not met its expected projections over a 20 year aggregate. It's failed completely.

[TheGoodUsernamesWereTaken]

Originally Posted by jw2

CalPERS has a history of poor investments. After the money has been made on an investment, then they enter that market. They need forward thinkers, not follow the crowd thinkers.

Really what they should do, as they have a history of failure, is just turn over the management to Fidelity or some other major player. This fund is way over the head of the current clowns

Great post, well said.

[expatCA]

Originally Posted by CaliRestoration

This.

The Newhall Ranch deal is possibly one of the worst state sponsored investment projects I've ever witnessed. I knew people involved with it, and they knew it wouldn't fly even early in the planning stages.

Who got the money via the investment? A developer friend of the Politicians or Union? It isn't always bad decisions, it is .... good for someone.

The old adage: Follow the money.