FBI investigating PSER’s real estate purchases: report

As part of an FBI investigation into the largest state pension fund, authorities are looking into a number of property purchases, including the former Patriot News building in Harrisburg.

The former Patriot News building at 812 Market Street was empty for eight years when the property was purchased in 2017 by Twenty Lake Holdings, a New York commercial real estate company, for $ 644,286. Seven months later it was sold to L&B Realty Consultants LLP, Dallas.

The Pennsylvania School Employees Retirement System announced in January 2018 that L&B had purchased the eight-parcel property on its behalf and paid $ 1.6 million.

PSERS confirmed earlier this month that it is the subject of a grand jury investigation.

Now, the Philadelphia Inquirer reports that as part of an FBI investigation, authorities are considering approving the $ 14 million PSERS fund to purchase and demolish this and other properties near its Harrisburg headquarters.

The agency has not clarified its plan for the property.

At the time of the purchase, PSERS issued a statement stating that the previous purchase price of $ 644.00 “has no direct bearing on the actual value of the property. The purchase price of $ 1.6 million paid by PSERS corresponds to the fair value of the eight-parcel property. “

PSERS is also reportedly under scrutiny in its investigation into the purchase of other real estate, including multiple parking lots in and around Market Street, as well as a property formerly owned by the Pennsylvania Housing Finance Agency.

PSERS has been criticized in recent years for its sluggish returns and increasing reliance on taxpayers and school workers to help pay pensions.