California First LLC Selected by State in Sale Leaseback of State Office Buildings
IRVINE, CA – California First, LLC, a consortium led by Hines and international private equity firm Antarctica Capital Real Estate (ACRE), announced today that it has been selected as the winning bidder by the State of California to purchase and leaseback eleven (11) of the State’s office buildings following a comprehensive yearlong process. The decision was made public as a part of the final State budget discussions.
“California First, LLC is pleased and proud to have been selected to be the steward of a number of the State’s assets,” said Colin Shepherd, Hines Senior Vice President. “Our purchase price represents fair market value and exceeds the State’s initial anticipation of net proceeds. We look forward to working with the State to finalize any details that need to be addressed.”
The California Legislature in July 2009 authorized the State’s Department of General Services (DGS) to proceed with a process to select an investor or group of investors to sell and leaseback 11 of its office buildings in order to raise revenues to help offset a multi-billion budget shortfall. More than a year later, DGS recommended California First’s proposal over the more than 300 bids received.
“California First’s proposal was based on exceeding anticipated proceeds, certainty of closing, and delivering first class management of California’s assets,” said Chandra Patel, Managing Director of Antarctica Capital Real Estate. “We assembled a consortium that will deliver on our promise to the State.”