Tags: US | Selling | California

California Puts 11 Office Buildings Up for Sale to Cut Deficit

Friday, 26 Feb 2010 05:30 PM

California has put the "for sale" sign on 11 state office buildings, including the San Francisco Civic Center and the Ronald Reagan State Building in Los Angeles, as a way to raise cash to shrink the budget deficit.

Real estate firm CB Richard Ellis released a sales brochure Friday titled the "Golden State Portfolio" as part of its marketing strategy to lure potential buyers. Combined, the buildings have more than 7 million square feet of office space.

State officials are hoping to draw offers worth more than $2 billion.

California and other state and local governments have been eyeing their high-rises, prisons and even capitol buildings to generate fast cash for fiscal relief. Arizona has invited investors to buy bonds secured by landmark state government buildings, while Connecticut plans to bring in $60 million over the next two years from real estate sales.

California's sale is the largest.

CB Richard Ellis Vice Chairman Kevin Shannon said the sale is a low-risk investment for potential buyers worldwide. Since the state is planning to lease the space back, it gives the new owners a steady stream of income.

"We are confident that the expansive global marketing campaign we're launching today will attract strong national and international interest in this generational acquisition opportunity," Shannon said in a statement.

The sale was adopted as part of last year's budget agreement between Gov. Arnold Schwarzenegger and lawmakers to raise money for the state. California is facing a $20 billion shortfall through the middle of next year.

Potential buyers have until April 14 to make offers.

© Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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