What’s next for pension funds in the real estate fallout?

What’s next for pension funds in the real estate fallout?

A California bankruptcy sounds like a bad suspense novel, with themes of falling values, increased costs, missed payment deadlines and enormous acreage that adds scale to the horrifying tale.

But it’s the link to the nation’s largest pension fund that makes me wonder what the last chapter will hold – and how many other deals will fall while the story is playing out.

Specifically, I’m wondering: How many of Michigan’s pension funds are just as exposed, and which local properties could fall first?

The bankruptcy is LandSource Communities Development, which now holds claim to 15,000 acres near Los Angeles – now one of the largest land deals to “falter amid the national housing glut,” according to the Los Angeles Times.