A rendering of CalSTRS building expansion.
WEST SACRAMENTO, CA—The trustees of the California State Teachers' Retirement System—the Teachers' Retirement Board—report it has approved a 275,000-square-foot expansion of the CalSTRS headquarters here that will increase the total office space at the complex to 684,000 square feet.
The board approved a budget for the expansion that is not to exceed $300 million. The expansion is expected to deliver in mid-2021.
Additionally, the decision to expand will make more than 200,000 square feet of rentable office space available for lease in CalSTRS' current riverfront building. Demand is expected to be high given the lack of Class A, LEED office space available in or near the downtown area, the board stated in an announcement.
“There is no comparable office space available for lease in the Sacramento region that sits right in the urban core,” states California State Teachers Retirement System chief investment officer Christopher J. Ailman. “This expansion will allow the Investment Office to continue to grow our internal management. The more investments we can manage in West Sacramento, the less we have to pay external Wall Street firms.”
The expansion is anticipated to be financed through lease revenue bonds, including the possibility of green bonds. Though the final budget figure is not expected until late summer 2019, analyses of funding options demonstrated that lease revenue bond financing is the most efficient vehicle and the best long-term value in terms of cost and operational efficiency.
The building is designed by ZGF Architects LLP along with consultation and oversight from Ridge Capital, Inc. and DPR Construction and will feature 80% onsite renewable energy, which enables CalSTRS to achieve a Zero Net Energy (ZNE) facility designation.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
