The California First LLC partnership - which includes Hines
Interests, the largest landlord in Sacramento - should complete the
deal by the end of the year. More than 300 companies
submitted bids for the buildings, which include the California
Emergency Management building, the Capitol Area East End Complex,
along with the Department of Justice and Franchise Tax Board
offices.
The state has agreed to lease back the office space over the
next 20 years, but is not required to maintain, operate or repair
the buildings. The state should collect about $1.1 billion
for the buildings after paying off debt, but the deal could
actually cost the state about $1 billion over the next two decades,
according to a recent analysis.
