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Los Angeles Downtown News: State Selling Two Downtown Buildings

December 18, 2009

State Selling Two Downtown Buildings
Los Angeles Downtown News
By Ryan Vaillancourt

... As part of the effort to bridge an estimated $21 billion state budget deficit, Gov. Arnold Schwarzenegger is putting two high-profile Downtown buildings up for sale. The Ronald Reagan State Building and the Junipero Serra building are among 17 state-owned properties that real estate firm CB Richard Ellis has been contracted to market and sell...
... However, with credit still hard to get, any potential buyer will likely have to come to the table with all cash, or a loan with a very low loan-to-value ratio, said Tracey Seslen, a finance professor in USC's Lusk Center.

"There is such tight access to credit right now and the commercial mortgage-backed securities market has virtually shut down over the last couple of years, so that line of financing is really nonexistent," Seslen said...