Steve Morris, assistant professor of real estate finance at the University of Michigan's Ross School of Business, says the deal doesn't add up."I can't fathom how they could have spent that amount of money," Morris said.
For what the pension fund paid, per square foot, to renovate the 1921 building, it could have built a "luxury marble high-rise with the latest technology."
The pension fund bought the building as an investment property, but operates its own offices out of City Hall.
The investment is among a slew of deals that have led Detroit's two public pensions to report losses of more than $480 million since 2008.
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