Schwarzenegger-era real estate deal is focus of lawsuit

Source: Los Angeles Times

Gov. Jerry Brown is embroiled in potentially costly lawsuit over a Gov. Arnold Schwarzenegger-era real estate deal gone bad.

At the center of the legal battle is the Golden State Portfolio, a collection of 11 state office buildings, including two in downtown Los Angeles, that Schwarzenegger agreed to sell to investors for $2.3 billion before leaving office at the end of 2010.

Schwarzenegger launched the deal to help fill a $25-billion deficit in the recession-racked state budget.

But Brown, who took over in January 2011, promptly canceled the sale. He called it a waste of money to sell valuable office space, only to lease back the same property.

Read more: http://www.latimes.com/business/la-fi-capitol-business-beat-20130812,0,2328306.story