11 properties added to state’s for-sale list

Following the state’s Orange County Fairgrounds auction last month, California has officially released its portfolio of office buildings for sale.

The 11 properties, totaling 7.3 million square feet, are expected to generate more than $2 billion in revenue to help the state’s struggling finances.

But the fairgrounds sale fell short of expectations — estimates for the value of the land ranged from $90 million to $180 million, and the winning bid came in at $56.5 million. Residents in Costa Mesa and throughout Orange County are urging the fair board to reverse the sale, maintain local control and allow the real estate market to recover.

Still, state officials say the revenue is badly needed.

“This sale will allow California to pay off debt, tap equity and lock in some of the lowest rental rates seen in years,” Ron Diedrich, acting director of the Department of General Services, said in a statement. “The short- and long-term financial gains will be real to help shore up the state budget in the years to come.”

The buildings, which are offered on a sale-leaseback basis, are in Los Angeles, Oakland, Sacramento, San Francisco and Santa Rosa. CB Richard Ellis’ Torrance office is marketing the properties. Offers are due by April 14.

Gov. Arnold Schwarzenegger and the state Legislature in June authorized the sale, the proceeds of which will be used to retire more than $1 billion in bond debt and funnel $660 million into the state’s general fund.