Today’s real estate market is still trying to recover – values and sales are still down and homeowners are always in danger of foreclosures. This may be why some companies and pension funds are looking at cutting back on losses without sacrificing efficiency and performance. That’s what the largest public pension fund in the United States is aiming at when it withdrew its apartment complex portfolio from the largest global investment firm.

California Public Employees Retirement System, or more known as Calpers, is replacing BlackRock Realty Advisors as the manager of its $1 billion apartment complex real-estate portfolio. BlackRock has managed the apartment complex portfolio since 1998. The apartment complex portfolio will now be consolidated with GID Investment Advisers LLC, an affiliate of The General Investment & Development Cos.

“By consolidating our core multifamily portfolio under a single partner/manager, we anticipate lower costs, improved efficiency and enhanced performance,” says real-estate investment division head at Calpers, Ted Eliopoulos.

Calpers’ decision came right after it was forced to write off an investment with BlackRock in New York City’s Stuyvesant Town-Peter Cooper Village. The investment, which amounted to $500 million, was supposed to be made through a partnership with Tishman Speyer Properties LP. Calpers has suffered a 37% loss, equivalent to 1.3% of the pension’s market value, in its real estate holdings for the fiscal year ending June 30^th of this year – but the fund still earned 11.4% for year because the bonds, stocks, and private-equity funds earned money.

BlackRock Realty Advisors refused to comment on California Public Employees Retirement System’s move, saying it’s against company policy to comment on client activity.

GID Investment Advisers LLC will now manage investments in 13 states. California Public Employees Retirement System’s apartment portfolio amounts to $1.1 billion and it consists of 57 apartment projects with a total of 14,674 units.