Fla. pension fund might invest in real estate

[Matt J]

yes, to the third option - property bought will appreciate.

As to your first point, that's exactly why Florida's pension fund won't be first to invest, but will leave other soverign wealth funds, from China, Singapore, and other state/provincial progressive pension funds invest first. Those funds will have bigger gains as a result, but the risk with Florida going first is that you think there is the appearance of cronyism - and its a valid concern, however misplaced with Florida's nation leading pension fund.

FYI, if cash sits idle, we all become renters, in Pottersville.

I should add that in optimal theory, Florida's pension wold invest in Alabama's crashed beach real estate, and Alabama would invest in Florida's. That is actually how it should work, but I just think the returns will be better in South Walton, than Orange Beach, but thats my personal best guess. Pension funds almost universally allocate a portion of their portfolio to alteranative, real estate, raw land or similar investments - not a huge portion, but 2 to 10 percent of their portfolio. Both Florida and Alabamma have invested in NYC real estate, with incredibly divergent results by the way. Alabama bought low, and Florida bot high.

One of the reasons I think the State hasn't invested in it's own real estate is that little secret we all know in the back of our heads, but never utter. They could spend millions on a stretch of foreclosed property and have it hit by a giant hurricane a month later. IIRC the state is able (and required) to purchase liability insurance, but can't purchase replacement insurance.

 

[rapunzel]

Ah, the real estate lobby at work! Poor, poor Florida. The state should never play a role in setting the market price for it's own real estate -- that's a fool's game, welfare for the wealthy.

 

[SHELLY]

Ah, the real estate lobby at work! Poor, poor Florida. The state should never play a role in setting the market price for it's own real estate -- that's a fool's game, welfare for the wealthy.

...at this stage of the game the State is the only fool left who will pay "Full Bubble-era Asking Price" for swampland -- a fact that's not entirely lost on ST JOE and its newly hired aerometropolis RE shill.

.

 

[robertsondavies]

Dearest Shelley, no one is talking about paying full bubble era prices.

We're talking about vulture investing 101 on behalf of retired and retiring teachers employed in Florida public schools, and other public servants as well.

Like in past cycles real estate busts, when David Bronner at Alabama's Retirement Fund bought up whole buildings in NYC downtown area, at fraction of then bubble values, and made a frigging fortune for Alabama Retirees - and saved the taxpayers from a pension bailout in the process.