CalSTRS is selling a New York skyscraper at a loss, exiting an investment that was hatched at the height of the real estate bubble.
The California State Teachers' Retirement System and its investment partner, Silverstein Properties, are selling a 35-story office tower they purchased in 2006. The sale price is $360 million, according to the Wall Street Journal. The partners paid $416 million in 2006, the newspaper said.
CalSTRS, which owned 80 percent of the partnership with Silverstein, confirmed the sale Wednesday. Spokesman Ricardo Duran wouldn't comment on the price.
The investment has been a trouble spot for CalSTRS for some time. The partners reportedly defaulted on their mortgage in late 2010 and were in danger of losing the property to foreclosure. They restructured the debt, which let them hold on as market values partially recovered.
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