California to Sell 24 Government Buildings for $2.3 Billion

The state announced Monday it is selling 24 government office buildings — including the Ronald Reagan State Building in Los Angeles and the San Francisco Civic Center — to a group of private investors for $2.3 billion. Ron Diedrich, acting director of the California Department of General Services, announced it selected the offer from California First LLC, a partnership led by a Texas real estate firm and an Orange County private equity firm. About $1 billion of the sale will be used to pay off bonds on the buildings, leaving more than $1.2 billion to go into the state's general fund. "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." Gov.Arnold Schwarzenegger and lawmakers included the sale as part of the state budget last week...more

Excellent. Land should be next.