The NEWS SERVICE OF FLORIDA: Florida Investment Hit By Real Estate Bust

Sept. 1, 2009 — Buying in at the peak of the market, Florida lost $250 million since 2007 on a New York City real estate deal that went south with the commercial bust, state investment executives told Gov. Charlie Crist and other top state officials Tuesday.  Speaking to the State Board of Administration as part of a quarterly update, SBA executive director Ash Williams defended the policies in place when state investment managers in 2007 entered into a partnership to purchase a stake in Peter Cooper Village and Stuyvesant Town, an 80 acre parcel of luxury apartments in the heart or Manhattan. The state remains a partner in the venture. Williams, who was not in charge when the investment was made, said proper procedures were followed when the decision was made, but acknowledged that red flags were apparent including the sale price and amount of borrowed money used to secure the purchase.