The California Department of General Services has placed 11 state office properties, totaling nearly 7.3 million rentable square feet, on the market. The portfolio, valued in excess of $2 billion, is being brokered by CB Richard Ellis on a sale-leaseback basis to raise funds to keep California's government going according to a GlobeSt.com article. "This sale will allow California to pay off debt, tap equity, and lock in some of the lowest rental rates seen in years," said DGS Acting Director Ron Diedrich. "The short and long-term financial gains will be real to help shore up the state budget in the years to come."
The portfolio properties are among some of California's most energy efficient and environmentally friendly, making the properties attractive to a market that is seeking sustainable green designs. The US Green Buildings Council's Leadership in Energy and Environmental Design (LEED) certification has been achieved on nearly all of the buildings. "What the real estate investment community is looking for in today's market are secure, low-risk investment opportunities -- occupied buildings with long term, credit-worthy tenants, as well as increasingly 'green' product, both of which the State's portfolio offers," said Kevin Shannon, Vice Chairman for CBRE and the lead broker on the sale leaseback assignment. "We are confident that the expansive global marketing campaign we're launching today will attract strong national and international interest in this generational acquisition opportunity."
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