State Lease-back Plan for 11 Properties Delays Sale of Nelles Property in Whittier

Matt Perry represents homebuyers and sellers of property in Costa Mesa, Newport Heights, Newport Beach and Laguna Beach.

Work on the state's controversial plan to sell 11 state properties and then lease them back has delayed final approval of the sale of the now-closed Fred C. Nelles Youth Correctional Facilities.

The state Department of General Services in May announced the selection of Brookfield Homes, a national home developer locally based in Costa Mesa, to develop the 73.8-acre property but final approval is needed from the state Public Works Board.

That has been delayed until February or March, state and city officials said.

"I can confirm that for the most part we have been focusing all of our efforts on the lease-back effort," said Gretchen Zeagler, spokeswoman for the department.

"It's because of it's potential (to raise) $1.3 billion," Zeagler said. "(But) we are moving forward with the Nelles property."

The state is attempting to sell 11 properties and then lease them back for 20 years from the new owners. The money would pay off more than $1 billion in bond debt and generated an additional $1.3 billion for the general fund, said Eric Lamoreaux, another spokesman for the department.

The deal has come under fire and is facing a lawsuit from opponents who say the deal would end up costing the state more over the long run.

But in working through this deal, the state apparently has had a lack of attorneys to help with the "lease-back" project, said Jeff Collier, assistant city manager for Whittier.

Read more at the Whittier Daily News.

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Matthew Perry a Broker Associate and GRI with the Newport Beach Coldwell Banker office has provided you with this update. Matt's office is located at 140 Newport Center Drive, Newport Beach CA 92660, suite 100. Matt represents home buyers and sellers in  Eastside Costa Mesa, Newport Beach, Newport Heights, Newport Coast, Laguna Niguel, Costa Mesa and Laguna Beach.

Preview Matt Perry's targeted client services and his customized proven system TheSource™ -- your premium real estate tool by engaging Matt's user friendly web site. In addition, Matt's team provides foreclosure and REO sales assistance.

You can reach Matt Perry at 949-721-5433 or matt@perrypropertyadvisors.com.