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California accepts $2.33-billion bid for 24 office buildings

The state will lease back the buildings, two of which are in downtown Los Angeles, for at least 20 years.

Los Angeles Times
California officials accepted a winning bid Monday of $2.33 billion to sell 24 state office buildings to a consortium of three U.S. investment companies.
The state will lease back the buildings, including two in downtown Los Angeles, from the new owners for at least 20 years. The sale will generate $1.2 billion
for the state general fund and $1.09 billion to pay off bonds on the buildings.

"This offer presents the best value for the state and achieves the goals set forth by the Legislature and governor," said Ron Diedrich, acting director of the
state Department of General Services. "This sale will allow us to bring in desperately needed revenues and free the state from the ongoing costs and risks of
owning real estate." As reported last month by The Times, the new owners are a Houston-based developer, which will manage the properties - and Spyglass Investment Group of Irvine which makes investments on behalf of clients such as pension funds and institutions.

"We think the opportunity to acquire this large of a portfolio all at one time with a solid tenant like the state of California makes good sense," said Richard
Mayo, managing partner of Spyglass Investment Group... read more here

State of California Selects Buyer for State Buildings

$2.33 billion Sale-Leaseback Bid Delivers $1 billion to the General Fund; Makes Future Costs for State Office Space Predictable and Controllable

Department of General Services, California
The Department of General Services announced it has  selected California First, LLC, a buyer for 11 state office properties authorized by the legislature and Governor  last year.  The winning offer was $2.33 billion — resulting in more than $1.2 billion for the state general fund, and $1.09 billion to pay off bonds on the buildings.  Over the next 20 years, the state will lease the offices back from the new owner at predetermined rates, and will no longer maintain, operate, or repair the buildings.  All the leases with California First allow the state to buy back any or all of the buildings at anytime during the 20-year term.

“After an extensive review of the more than 300 bids that were received, I have determined that this offer presents the best value for the state and achieves the goals set forth by the Legislature and Governor,” said Acting DGS Director Ron Diedrich.  “This sale will allow us to bring in desperately needed revenues and free the state from the ongoing costs and risks of owning real estate.”  Antarctica Capital Real Estate, LLC; a venture led by California real estate veteran Rich Mayo of Spyglass Investment Group... read more here

California Scheemin - Time To Get Down On Your Knees As Prey


Jerry Doyle Blog
Arnold Schwarzenegger, the failed RINO Governor of California, and Department of General Services (DGS) hoax person Ron Diedrich announced that the Golden State is selling off 24 government office buildings for $2.33 Billion to pay down debt and free up $1.2 Billion for the state's general fund. Sounds like prudent financial maneuvering in this "the worst economy since the Great Depression" …. DGS Director Mr. Deidrich states "after an extensive review of more than 300 bids that were received, I have determined that this offer presents the best value for the state and achieves the goals set forth by the Legislature and Governor. This sale will allow us to bring in desperately needed revenues and free the state from the ongoing costs and risks of owning real estate."

So it begs the question. Who would want to assume these astronomical costs and related risks and why? The successful bid came from California First LLC, a private equity firm headed up by Rich Mayo of Spyglass Investment Group. There are other undisclosed private investors.

Mr. Mayo has an extensive and impressive 25 year real estate background. He also has extensive and impressive connections... read more here

Going, Going, Gone


Real Estate Bis Now
We get excited if we nab a yard sale Crock Pot at a bargain rate, but that's got nothing on this deal: 11 office buildings that the State of California is selling to raise cash. We checked in yesterday with Rich Mayo, whose company Spyglass Investment Group is part of the group that made the winning $2.3B bid. The 11 properties comprise 24 buildings totaling 7.3M SF, including the Ronald Reagan State Building at 300 S. Spring St. in downtown LA (above). The state Department of General Services selected California First LLC, to purchase and leaseback the buildings. ACRE is led by Rich and his partner... read more here