Bid prices exceed California expectation in office sale

SACRAMENTO — The Schwarzenegger administration says it has received higher-than-expected bids on the sale of state properties.

The California Department of General Services on Friday announced it received more than 300 offers related to the sale. The state received multiple bids for the entire portfolio of 24 office buildings above the state's $2 billion estimated sale price.

DGS Acting Director Ron Diedrich says higher sales prices will result in more money to offset the state's $20 billion deficit. The state had estimated it would net $660 million from the sale after paying off construction bonds.

An Associated Press analysis has found that if the state sold the properties for $2 billion, it would end up costing California taxpayers about $1.1 billion more to rent than own over the next 20 years.

Copyright 2010 The Associated Press.