CalSTRS to Build New Headquarters in New Development Along the Sacramento River
Sacramento, CA – The California State Teachers’ Retirement System announced today plans to invest in West Sacramento as part of the Sacramento Riverfront Master Plan by constructing a 14-story headquarters building. Groundbreaking is planned for fall 2006 with move in expected in spring of 2009.
The Sacramento Riverfront Master Plan is a key component of West Sacramento’s broad redevelopment and revitalization efforts and is designed to create a community feel with a river- front space that is safe, inviting and walkable. CalSTRS’ headquarters will be located within Raley’s Landing, a mixed-use community comprised of commercial space, restaurants, a hotel, housing and recreational opportunities on the banks of the Sacramento River.
“We are very proud to be an integral part of West Sacramento’s vision for the future,” said CalSTRS’ Chief Executive Officer Jack Ehnes. “This opportunity allows us to invest in our own community while making a commitment to a sustainable investment in our real estate portfolio and most importantly, creating a productive work environment for our employees – all to the benefit of our members.”
Facing projected growth in membership and an ongoing need for more work space to serve its 776,000 current members, CalSTRS’ began a two-year long search to solve its space shortage. More than 35 sites throughout the region were reviewed including existing buildings and those in development. The West Sacramento site was chosen because of the ability to construct a modern, efficient work space and for the investment value provided by building in the burgeoning area.
“Our new home will dramatically increase the efficiency of our operations by consolidating our staff currently housed in three buildings into one facility,” said Mr. Ehnes. “We are taking a very long-term approach in charting a course for the organization. Demographic trends have greatly influenced the workspace design. For example, we know that the workforce of the future will be far more effective in a collaborative, team-oriented work environment. We are planning for that future now to fulfill our commitment to our members for generations to come.”
Utilizing the latest breakthroughs in sustainable building science and technology, the 14-story office tower atop a five-level parking structure will be constructed to meet the Silver certificate LEED® designation. The building’s design incorporates high performance building systems and water conservation measures in order to reduce or eliminate negative impacts on the environment. The tower will feature energy efficient glazing and be oriented in the east to west direction to maximize access to natural light and to minimize direct solar heat gain throughout the 400,000 square feet of interior space. While the estimated cost of construction is $176-$186 million, the long-term cost savings due to sustainable construction and energy-efficient features is estimated at $1.7 million annually.
CalSTRS’ real estate acquisition also includes land that may be developed at a later date dependent on the growth requirements of the organization. Tentative plans for this parcel are a seven-story, high-rise office building consisting of 200,000 square feet of office space, approximately 617 parking spaces and up to 20,000 square feet of retail space.
An additional parcel is included in the investment adjacent to the headquarters’ site. This parcel may be used to build a 17-story high-rise residential building providing 150 condominium units and 300 parking spaces.
Visit the HQ Information Center for more details about the CalSTRS headquarters building project.
With a $142 billion investment portfolio, the California State Teachers’ Retirement System is the second-largest public pension fund in the United States. It provides retirement, disability and survivor benefits to California’s 776,000 public school educators from kindergarten through community college.