CalPERS CEO Marcie Frost sent the following letter to the Sacramento Bee editor:

April 18, 2022

Dear Editor:

The Bee column regarding CalPERS’ decision to sell its 301 Capitol Mall property is misinformed and misguided. The author wants the site to be developed yet criticizes a decision that will achieve that goal.

For more than a decade, CalPERS and two prominent commercial real estate development companies worked to create a project to benefit Sacramento and meet CalPERS’ financial duty to maximize investment returns that deliver retirement security to two million members. We were fully invested in the transformation of the capital city and its downtown core. I was proud to meet with The Sacramento Bee to promote this vision as we worked to identify an anchor tenant. Our whole organization wanted it to succeed, because Sacramento is our home and where CalPERS is headquartered.   

Unfortunately, despite this investment of time, expertise, and resources, it became clear the best solution was selling the property to a developer who didn’t have to meet our fiduciary requirements. The real estate market has changed because of COVID-19, an increase in telework, and new economic realities. Our decision to sell will ultimately help Sacramento achieve its downtown goals, provide a lasting benefit to the region, and respect CalPERS’ responsibility to public employees.  

Sincerely,

Marcie Frost, CEO
CalPERS