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A group of private investors will be purchasing several of state-owned buildings for $2.3 billion, the California Department of General Services announced Monday. California First LLC, a partnership between a Texas real estate firm and an Orange County private equity firm, will soon own 7.3 million square feet of office space across the Golden State, including two downtown Los Angeles buildings: the Ronald Reagan State Building and the Junipero Serra Building. "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," according to the Associated Press. However, the state will now rent the spaces back at market rate for 20 years, something that could cost taxpayers $5.2 billion over time.
[thanks, torrmoz!]
