The $124 billion California Public Employees' Retirement System, Sacramento, sent out about 200 RFPs in its search for firms to manage the fund's $1.4 billion office property portfolio. Fourteen managers responded for Eastern or Western or both region assignments in the United States.
Typically, the only managers responding to a request for proposals are the ones that believe they are capable of taking on the additional work.
Managers in the running are Clarion Partners; Commonwealth Partners; Equinox Realty Advisors; ERE/Yarmouth Group; Hines Interests; J.P. Morgan; Kennedy Associates; LaSalle Advisors; Rockford/Spaulding & Slye; The RREEF Funds; Shorenstein Co. L.P.; Westmark Realty Advisors; Brandywine Realty Trust; and William Wilson.
Finalist recommendations are expected sometime in February.
CalPERS' largest office property in the Eastern region is The Chancellory office property in Itasca, Ill. It has 1.2 million square feet.
Its largest office property in the Western region is Bishop Square, Honolulu. It has 1.4 million square feet.
But neither building has the highest gross market value. That title belongs to a considerably smaller building, the 784,300-square-foot 1001 Pennsylvania Ave. office property in Washington. Its gross market value is $195.2 million. But it has only 30 tenants.
Bishop Square, with a gross market value of $86.6 million, has the most tenants of any CalPERS building, 241. The Chancellory has 135 tenants with a gross market value of $133.7 million.