Two dozen state office buildings across California officially go on sale Friday as the cash-strapped state seeks to raise more than $2 billion to pay off some of its long-term debt.
The state plans to sell the buildings, which include the Ronald Reagan State Building in downtown Los Angeles, and then lease back the office space for state use for at least 20 years. Gov. Arnold Schwarzenegger and the Legislature approved the sale last June.
Under the proposal, for example, the twin-towered Reagan state office building at 3rd and Spring streets would be purchased by an investor who would in turn lease it to the state. The state would pay the new owner an estimated $12.2 million a year in rent, according to the plan.