CB Richard Ellis to market $2 billion in state buildings
Los Angeles-based commercial real estate brokerage CB Richard Ellis Group just got a big gig from the state of California: selling an estimated $2 billion worth of office state office buildings to help raise money to cover budget shortfalls.
CB Richard Ellis intends to sell 17 state buildings in 11 locations and has started marketing the properties to investors globally.
The state Department of General Services hopes to have the sales completed by the middle of next year. State employees would continue to occupy the buildings as tenants with 20-year leases.
"This will be the largest office portfolio available for sale in the nation," said Kevin Shannon of CB Richard Ellis. The state hopes to net $660 million in profit on the sales.
The Los Angeles properties on the block are the 17-story Ronald Reagan State Building on Spring Street, completed in 1990, and the Junipero Serra Building, a 10-story former department store on Broadway built in 1914 and renovated in 1999.
-- Roger Vincent
Photo: The Ronald Reagan State Building in downtown Los Angeles is up for sale. Credit: Robert Lachman / Los Angeles Times