CalPERS has terminated CIM Group from a project to develop a vacant lot owned by the pension fund in downtown Sacramento, according to a statement from spokeswoman Megan White.
"We are engaging with a new manager to take over this project to ensure that the project is in the best interests of CalPERS and our members," the statement said.
She did not respond to questions about the reason for the dismissal from the project, a mixed-use tower that would be Sacramento's tallest building at 301 Capitol Mall. According to CIM's website, the project is slated to be completed by September 2022.
However, Ms. White made it clear that CalPERS is terminating CIM for only the one project.
"CIM continues to be an important manager in our real assets portfolio," Ms. White said.
The $378.4 billion California Public Employees' Retirement System, Sacramento, has a total of $1.3 billion invested in CIM funds across its real assets portfolio.
In a written statement, CIM said CalPERS approached the real estate manager in 2007 to help with a stalled project made up of two mixed-use, 615-foot towers on the property.
"We worked diligently with CalPERS' staff to engage the community, the city of Sacramento, potential tenants, brokers and residents in a thoughtful plan to realize CalPERS' and the city's shared vision for this site," the statement said.
CalPERS eventually approved a single 557-foot building with office, residential and retail space.
"We at CIM believe the project we and CalPERS created is a good solution for the site, albeit not the only solution. ... CIM signed on to this project to support CalPERS' goals and remains committed to supporting whatever team and direction CalPERS selects," the statement concludes.
Bill Mendel, CIM spokesman declined comment beyond the statement.