UPDATE: California pension plans trade L.A. property in $900 million deal
The California State Teachers’ Retirement System (CalSTRS) completed a textbook high-yield turnaround investment when it recently sold the City National Plaza in Los Angeles to its Sacramento neighbor the California Public Employees’ Retirement System (CalPERS) for a sales price pegged at more than $900 million by local sources. CommonWealth Partners acquired the property as part of its co-investment platform with CalPERS, which was happy to add the iconic twin 52-story office towers to its core office property portfolio. It appears to be a “win-win” deal for the two California pension fund powerhouses.
The $164 billion CalSTRS acquired the 2.5 million-square-foot City National Plaza as part of a joint venture with Thomas Properties Group for $270 million in 2003 at a time when the