Ricardo Duran, a spokesman for the pension fund, said CalSTRS has written off $64 million invested in Fairfield Residential LLC, a major apartment developer based in San Diego. Fairfield filed for Chapter 11 bankruptcy reorganization Sunday.
"It's been written off at this point," Duran said. "Current market value: zero."
However, the California State Teachers' Retirement System isn't abandoning the deal. It still plans to invest an additional $6 million to complete its original commitment of $70 million and believes there's a chance to recover at least some of its losses, he said.
When I try that strategy in Reno it usually doesn't work well. Here's to hoping that it works better for CalSTRS.
I guess I don't have to worry, though. The taxpayers are going to pay for my retirement regardless of whether or not CalSTRS makes good investments.