CalSTRS spends $180 million on New York office building

CalSTRS said this week it has invested $180 million to purchase a controlling interest in a major New York office building.

The California State Teachers’ Retirement System owns a 55 percent stake in the 1.2-million-square-foot office building, which is the former headquarters of investment banking giant Goldman Sachs.

The building is reported to be two-thirds empty. CalSTRS spokesman Ricardo Duran said the pension fund believes it is investing in a property with significant upside.

“CalSTRS likes the improving south Manhattan office market and anticipates leasing up the building over the next three years,” he said by email. “The purchase price and price per square foot is, we believe, quite competitive.”

CalSTRS is partnering in the deal with Murray Hill Real Estate Services of New York. Besides the purchase price, which totalled $330 million, the buyers took on $320 million in debt.

This story was originally published January 16, 2015 at 4:28 PM with the headline "CalSTRS spends $180 million on New York office building."