Ohio Teachers’ Pension System Buys Remodeled Texas High-Rise

State retirement system targeting Dallas for real estate portfolio investments.

A recently renovated Turtle Creek office high-rise has been purchased by the State Teachers Retirement System of Ohio.

Built in 1972, 3131 Turtle Creek was one of the first towers in the Dallas neighborhood. It was bought by Cardinal Capital Partners Inc. in 2014, which then gave the structure a near $10 million makeover.

The $77 billion fund reportedly bought the building for around $50 million, or slightly more than $350 per square foot. According to the Dallas News, the retirement system holds roughly $7.7 billion in real estate and is looking to buy more property in the Dallas area.

The Ohio retirement system has a funded status of 75.1%. Most recently, the retirement benefit system examined the pros and cons of reducing the risk in its healthcare portfolio at its April board meeting. Also discussed were the proposed system budgets for the 2019 fiscal year.

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New Accounting Rules Trigger a Paper Loss for Berkshire, but Buffett Says It’s OK

Company has $110 billion ready to make a large cash acquisition.

Despite losing more than $1 billion, Warren Buffett’s Berkshire Hathaway returned $5.3 billion in Q1 2018 operating earnings from its other businesses, which include insurer Geico and Dairy Queen.

Buffett attributed the $1.1 billion net loss to accounting rule changes that applied to the company’s $170 billion equities portfolio, a risk he had warned investors about in a February letter. He wrote then that the changes would produce “some truly wild and capricious swings.”

The changes to generally acceptable accounting principles require the $700 billion-plus Berkshire to include fluctuations in unrealized gains and losses of its stocks in its earnings statements. Although Berkshire reported $58 billion in total revenue for the quarter, Buffett’s business reduced the value of equities investments by $6.2 billion from the year prior.

Because a large chunk of Berkshire is in effect an investment fund, the portfolio’s fortunes have an impact on the conglomerate’s bottom line. The stock market in the year’s first quarter was down, and so were the company’s investment holdings.

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The wizard of Omaha told investors not to worry, saying that “the amount of investment gains/losses in any given quarter is usually meaningless.”

At Saturday’s annual shareholder meeting, Buffett said that Berkshire was still “open” to a large acquisition, with $110 billion in cash available to do it. While Buffett is looking “primarily in the US,” he told Yahoo Finance he was also open to business in other developed nations.

“I just want to hear about a big company that does something I understand that has a good business and a sensible price in mind,” he said.

Buffett did, however, mention during the Q&A session that he may not want to make a deal in smaller emerging markets because of “a lot of difficulties in market execution and taxation.”

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