There should be a new pool of money available for Sacramento start-ups following action today by the CalPERS investment committee. But it's a significant shot in the arm for American River, which is still in the process of being organized. It will be a new pot of money based in town that will be actively seeking out investments. CalPERS spokesman Brad Pacheco said the 12 investment partners were selected from 67 organizations that made proposals to the pension fund. Joint venture talks between commercial real estate brokers CB Richard Ellis and Cornish and Carey are off for now.
Sources say the deal fell apart last week after both sides took a hard look at the numbers.
When it was first discussed six months ago, a joint venture made lots of sense for both companies. CB, a national broker, is a big player in San Francisco. Together, the firms would be a Bay Area commercial real estate juggernaut. But the the dot-com downturn has dramatically slowed activity in the Silicon Valley as well as San Francisco, making it difficult to evaluate what each company could bring to the party and how to structure the deal financially. Let us hear from you.