[caption id="attachment_25847" align="alignright" width="312" caption="The Judge Joseph A. Rattigan Building in Santa Rosa was one of 11 state office buildings sold for $2.33 billion to buoy state finances. (courtesy of the Department of General Services)"][/caption]
SANTA ROSA -- The California Department of General Services today said that the Judge Joseph A. Rattigan Building in downtown Santa Rosa was among 11 state office buildings sold to a group of real estate investors in exchange for a 20-year lease in a deal with a total value of $2.33 billion.
The proceeds would bring in $1.2 billion for state general fund spending and $1.09 billion to pay off bond financing for the buildings. The deal was part of the state budget deal recently passed by the Legislature.
California First LLC, a joint venture between Houston-based Hines and Antarctica Capital Real Estate LLC, itself a venture between Rich Mayo of Spyglass Realty Partners and Chandra Patel of Irvine-based Antarctica Capital, beat about 300 other suitors for the properties in the Sacramento, San Francisco and Los Angeles areas totaling 7.3 million square feet, according to the state. The state put the buildings on the market in December.
The four-story, 92,400-square-foot Rattigan building was the smallest of the properties involved in the sale-leaseback and the only one located in the North Bay, according to the state. Designed by Santa Rosa-based architect Larry Simons, the 50 D St. building was constructed in 1983.
Net operating income in the first year of ownership is $1.04 million, compared to $148.2 million from all the buildings, the largest of which is the 1.8 million-square-foot Franchise Tax Board complex in the state capital.