California’s monetary woes are causing the government to employ drastic measures to make ends meet. The latest? Plans to sell $2 billion worth of prime real estate with lease-back agreements to help fill the budget gap. According to the Sacramento Business Journal, the majority of the real estate portfolio up for grabs is Sacramento office buildings, including the five-building East End Complex, the Attorney General building, and the Franchise Tax Board complex. Also for sale are buildings in San Francisco and Los Angeles, with a total square-footage reaching 5.66 million.
SBJ reports: “A preliminary estimate values the buildings at $2 billion, but the state’s proceeds are expected to be only a third of that, or about $662 million, because some of the buildings still carry financing and bonds. Some also have deferred maintenance.”