Sunday, February 28, 2010
Ronald Reagan State Building (photo: J. Mapes, USC)
Although the timing is not ideal from a seller’s standpoint, California is looking to unload two dozen state office buildings in order to pay off some of the state’s long-term debt. Among the buildings going up for sale is the twin-towered Ronald Reagan State Building in downtown Los Angeles. State leaders hope to make $2 billon from the sales of 24 buildings, although the current real estate market for commercial space is not that strong.
The state plans to continue using some of the buildings by leasing them back from whoever buys the properties. The new owner of the Reagan building could make an estimated $12.2 million a year in rent from state agencies located inside the structure.
Other buildings going on the market are located in Los Angeles, Sacramento, San Francisco, Oakland and Santa Rosa.
Commercial property values have fallen as much as 40% from their 2007 peak, according to the Los Angeles Times.
-Noel Brinkerhoff
California to Put Reagan Office Building Up for Sale (by Roger Vincent, Los Angeles Times)
Comments