California selects buyer for 11 state properties

SACRAMENTO — The state of California says a partnership led by an Irvine-based private equity firm and a Texas real estate firm has the winning bid to buy 11 state properties for $2.3 billion.

The Department of General Services selected the partnership called California First LLC on Monday.

Ron Diedrich, the department's acting director, says California First's offer will generate more than $1.2 billion for the state's general fund. About $1 billion of the sale will be used to pay off bonds on the buildings.

Gov. Arnold Schwarzenegger and lawmakers included the sale as part of the state budget last week. The 11 parcels contain 24 separate buildings that the state plans to lease back, including the Ronald Reagan building in Los Angeles and the San Francisco Civic Center.

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