The California State Teachers’ Retirement System (CalSTRS) said that its trustees approved the construction of a nearly 275,000-square-foot expansion of its West Sacramento headquarters.
The board’s decision sets the timeline in motion to construct the expanded facility adjacent to CalSTRS’ existing West Sacramento location, with estimated completion expected in mid-2021.
Additionally, the decision to expand will make more than 200,000 square feet of rentable office space available for lease in CalSTRS’ current riverfront Platinum LEED, zero waste certified building.
The building’s expansion space of nearly 275,000 square feet, which is tightly budgeted not to exceed $300 million, is anticipated to be financed through lease revenue bonds, including the possibility of green bonds. Though the final budget figure is not expected until late summer 2019, analyses of funding options demonstrated that lease revenue bond financing is the most efficient vehicle and the best long-term value in terms of cost and operational efficiency.
The building, as designed by ZGF Architects LLP along with consultation and oversight from Ridge Capital and DPR Construction, will be the most sustainable in the region, according to CalSTRS.
Additionally, the building will feature 80 percent onsite renewable energy, which enables CalSTRS to achieve a Zero Net Energy (ZNE) facility designation.