301 Capitol Mall Tower Divides CalPERS Board

Capitol Public Radio’s reporting that the CalPERS board has stalled the project because of internal disagreements. It appears three CalPERS board members have voted against the project citing a study that the return on investment would be to low.

No plans have been filed with the city and no major tenant has been secured, both are required for financing. Will CalPERS drop the ball again? This could be CalPERS way of backing out of the project without saying perspective tenants aren’t eager to lease space like CalPERS had hoped. For over two year the proposed Vanir Tower, a 26-story high-rise on J Street also could not find perspective tenants to secure financing.