By Dale Kasler
dkasler@sacbee.com
Published: Saturday, Jan. 9, 2010 – 12:00 am | Page 7B

Further jeopardizing a big CalPERS investment, the partnership in control of a New York apartment complex missed a debt payment Friday.

The partnership led by Tishman Speyer Properties and BlackRock Inc. announced it would miss a $16 million bond payment, according to Bloomberg News. That puts the complex a big step closer to default – a development that real estate analysts in New York have been predicting for months.

Default would likely wipe out the $500 million invested by the California Public Employees’ Retirement System, one of several big investors in the project. The California State Teachers’ Retirement System already has written off its $100 million investment.

The investment, made in 2006, was controversial because the partnership was accused of trying to drive out long-standing tenants in order to raise rents. Most of the units were subject to the city’s rent-control laws.

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