Sale and Leaseback of 11 state Office Properties in Los Angeles

March 30, 2010 - PRLog -- Gov. Arnold Schwarzenegger and the Legislature took a prudent and practical step: They approved the sale and leaseback of 11 state office properties in Los Angeles, Sacramento and the San Francisco Bay Area. Two of the 11 building complexes in the plan are in San Francisco: the Civic Center Complex, which includes the Hiram Johnson State Office Building on Golden Gate Avenue and the Earl Warren Building at 350 McAllister Ave., where the Supreme Court meets, and the Edmund G. Brown Building at 505 Van Ness Ave., which houses the California Public Utilities Commission.

A sale and leaseback arrangement is projected to produce $2 billion in revenues to reduce the state's debt, cost $1.35 billion to retire the bonds sold to build the buildings and net $660 million for state services, according to the Department of General Services, which manages these properties for the state. These office buildings are attractive to investors; thus they should sell at high prices and lock in favorable long-term leasebacks for the state. There is a limited supply of office buildings that are fully leased, energy efficient, environmentally friendly and certified by the U.S. Green Buildings Council.

Department of General Services Acting Director Ron Diedrich has said: "If we lease these properties, we can predict budget costs, knowing the state will not be liable for costs inherent to owning real estate."

Sale-Leasebacks through Calkain Companies, Inc. can offer an alternative form of conventional financing. Sale-Leaseback's allow business owners to unlock capital currently allocated to a potentially illiquid asset.

Calkain can facilitate business owners in the sale of their real estate, while simultaneously structuring a long-term net lease with the purchaser, allowing the business to retain control of their asset.
Advantages

   * Monetize your real estate
   * Obtain 100% fair assessed value of your asset
   * Improve working capital
   * Convert illiquid assets into cash
   * Consummate transactions quickly
   * Improvement on company balance sheet
   * Avoid risk of real estate ownership
   * Increase borrowing capacity
   * Attain tax advantages
   * Lease terms and conditions can be tailored to meet the needs of the seller
   * Enhance financial liquidity

        
What can a sale-leaseback be used for?

Sale-leaseback's have a broad area of disbursing cash proceeds for a company. Some of the more common reasons of why clients have participated in sale-leasebacks are:

Our capital sources include:

   * Pay down debt
   * Finance Operational Growth and Investment
         o Construct new facilities
         o Purchase new equipment
         o Invest in new technology
   * Reallocate capital into core business activities
   * Mergers and Acquisitions
   * Executive and/or Management Restructuring
   * Buy back company stock

Cash proceeds in result of a sale-leaseback have no limit on the expenditure. A sale-leaseback transaction is a great alternative form of financing which allows business owners to fully maximize the value and position of their real estate assets.  www.calkain.com

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Calkain Companies, Inc. where triple net lease properties are the focus of our business. Working through the net lease investment process with our clients is the basis and foundation our firm. We are your source for investment real estate! www.calkain.com