California accepts $2.33-billion bid for 24 office buildings

[bemildred]

California officials accepted a winning bid Monday of $2.33 billion to sell 24 state office buildings to a consortium of three U.S. investment companies.

The state will lease back the buildings, including two in downtown Los Angeles, from the new owners for at least 20 years. The sale will generate $1.2 billion for the state general fund and $1.09 billion to pay off bonds on the buildings.

"This offer presents the best value for the state and achieves the goals set forth by the Legislature and governor," said Ron Diedrich, acting director of the state Department of General Services. "This sale will allow us to bring in desperately needed revenues and free the state from the ongoing costs and risks of owning real estate."

As reported last month by The Times, the new owners are Hines and Antarctica Capital Real Estate, a partnership of Antarctica Capital and Spyglass Realty Partners Inc.

http://www.latimes.com/business/realestate/la-fi-state-offices-20101012,0,6019046.story

[JDPriestly]

1. Horrors!