April 2, 2024

Communications & Stakeholder Relations
Office of Public Affairs
(916) 795-3991 - newsroom@calpers.ca.gov

SACRAMENTO, Calif. – CalPERS announced Tuesday that it has sold its parcel of land at 301 Capitol Mall in downtown Sacramento, the conclusion of a nearly two-year effort sparked by a changing focus in its real estate portfolio.

The property was sold to the Shingle Springs Band of Miwok Indians of Placerville, Calif. CalPERS, along with its investment partner and consultant, felt that the undeveloped land no longer fit the strategic goals of the pension fund’s real estate program.

Over the past decade, CalPERS has shifted its real estate investments from development and growth to provide diversification, a stable cash yield, and inflation protection.

"This sale is in the best interest of our members and our portfolio," said CalPERS Chief Executive Officer Marcie Frost. "While we would have taken pride in the successful development of 301 Capitol Mall, we have a fiduciary duty to our members, and selling is the right decision."

Over the years, CalPERS and its real estate partners considered several ideas for the land, ranging in use and size. However, none met the specific criteria needed to proceed.

CalPERS invested in 301 Capitol Mall in 2006 with a local developer to build two high-rise residential buildings. The project was halted due to unfavorable economic conditions that worsened with the Great Recession. The land was placed under the management of CIM Group until 2019 when it was transferred into a partnership managed by Hines.

About CalPERS

For more than nine decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their life's work in public service. Our pension fund serves more than 2 million members in the CalPERS retirement system and administers benefits for more than 1.5 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. For more information, visit www.calpers.ca.gov.