California is selling prime property to help close the state budget gap. The “For Sale” sign is up on several buildings - including the Ronald Reagan State Building in downtown Los Angeles.
California has a couple dozen buildings up for sale. The former Broadway department store in downtown LA, built in 1914, is another the city hopes to sell. The state renovated and reopened it in the 1990s as the Junipero Serra state building. The Civic Center in San Francisco is for sale as well.
Once the new owners are in place, the state government will turn around and lease the space back. It’s pitching the deal as a safe bet for potential buyers around the world. The state wants to pay $12.5 million a year to rent the twin-towered Reagan Building at Third and Spring streets.
Selling state buildings expected to bring $2 billion. State officials say that’s enough to pay off bonds used to buy the property in the first place - and to have some left over.
California’s next state budget is $20 billion in the hole.