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"Nothing says 'capitulation' like Calpers dumping sites at $35K a pop," tweets Jeff Matthews of...

"Nothing says 'capitulation' like Calpers dumping sites at $35K a pop," tweets Jeff Matthews of the pension giant unloading thousands of properties on which it probably paid an average price in the $75K-$150K range. The fund now looks to real estate for stability and an inflation hedge, rather than for high yields. (see also)
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Comments (2)
  • Hubert Biagi
    , contributor
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    Calpers are selling right at the bottom. What do they care? The tax payers will make them whole.
    18 Jan 2012, 01:44 PM Reply Like
  • Wooster
    , contributor
    Comments (238) | Send Message
     
    I'm somewhat familiar with the Calpers residential land holdings in California, but don't know what properties are included in this sale. That said, it's hard to make money on $35k paper lots in most of California. The rest of costs can kill you. I'd love to pay that amount in Santa Clarita Valley, but I wouldn't touch it in Sacramento. I just depends. And tons of these deals were being unloaded as finished lots at 10% of costs over the last few years. No way is this a bottom of market price. We'll have to wait to see exactly where the lots are and in what condition they are in before making a better assessment.
    18 Jan 2012, 08:24 PM Reply Like
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