Monday, August 24, 2009

CalPERS walks away from KOIN building

From the Portland Business Journal:

The California Public Employees’ Retirement System has given up control of the KOIN Center, The Wall Street Journal reported Wednesday.
After action by a state circuit court in New York, a receiver can now be appointed to take control of the building and sell it.
A partnership of CalPERS and CommonWealth partners LLC of Los Angeles defaulted on a $70 million mortgage to New York Life Insurance Co.
The partnership paid $109 million to buy the 355,000-square-foot office building in 2007, at what was then the top of the market. The building, is one of the tallest buildings in Portland. It opened in 1984.
The decision by CalPERs to walk away from the investment shows even large institutional investors are choosing to give up on troubled properties rather than put more money into them, according to the Wall Street Journal.