- Associated Press - Friday, September 19, 2014

DALLAS (AP) - Bad real estate investments, including a luxury resort and vineyard in California, have cost the retirement fund for Dallas police officers and firefighters almost $200 million, according to a report by the fund’s staffers and a consultant.

The failed investments that began in 2005 also include upscale homes in Hawaii and large tracts of land in Arizona and Idaho.

The fund’s board listened to a presentation about the $196 million in losses by its staffers and a fund consultant on Thursday. The presentation did not specify the losses, but The Dallas Morning News (https://bit.ly/1mmCcVj ) tallied the numbers and confirmed them with fund officials.

The fund had valued its Napa, California projects at close to $100 million for several years, but in a recent appraisal, the properties’ value was estimated at $68 million. One of the Hawaii homes sold this year for $12.8 million when its asking price had previously been $22 million.

The pension fund also lost more than $34 million from its investment in Pima County, Arizona, closing the sale of a property for $7.5 million earlier this week.

Nearly half of the losses were recognized on the fund’s 2013 books completed this summer. Fund officials had expected an 11 percent return on its 2013 investment but received only 4.4 percent.

The 2013 records came from new appraisals on the properties. Before, the fund valued many of its real estate ventures by how much it had invested rather than relying on appraisals.


Information from: The Dallas Morning News, https://www.dallasnews.com

Sign up for Daily Newsletters

Manage Newsletters

Copyright © 2020 The Washington Times, LLC.

Please read our comment policy before commenting.


Click to Read More and View Comments

Click to Hide