CalPERS Invests $100M in Downtown Sacramento Condos

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CalPERS Invests $100M in Downtown Sacramento Condos

April 10, 2006
By Eugene Gilligan, Senior Editor

The California Public Employees' Retirement System has invested as an equity partner on a high-rise condominium project in Sacramento. CalPERS will invest $100 million in the $500 million project, The Towers at Capitol Mall.

The 2.1 million-square-foot project, to be built by Saca Development, will contain 804 condominium units, as well as a 230-room InterContinental Hotel and 60,000 square feet of retail space.

"(The CalPERs investment) gives the project instant credibility," said John Saca, president of Saca Development. He said that while the project has received praise from most in the community, "some have wondered if the project was too large for the Sacramento market, and how deep our condominium market is."

He said the project should receive construction financing "very soon," with groundbreaking to proceed shortly after.

The pace of condominium development is increasing in the city, due in large part to escalating single-family home prices. According to Marcus & Millichap Inc.'s national apartment report, about 1,000 condominium units are scheduled to come online this year, with another 5,000 in the planning process.

Apartment construction has slowed, but the report predicts development should accelerate, particularly downtown.