COMPANY DOWNSIZES OFFICE PORTFOLIO DUE TO SPECTRE OF SPLIT ROLL

If you are still wondering if the threat to destroy split roll is “real” and if it will have any impact on your business, just look at this recent announcement by Decron Properties that is divesting in California because of the potential that Prop. 13 protections will evaporate:

“Decron Properties has sold Ocean Plaza, an 8.6-acre mixed-use office and retail complex in Huntington Beach, California, to Vancouver, Canada-based Onni Group for $97.25 million.

“Located at 17011 Beach Boulevard, the property features a 207,645-square-foot, 14-story Class A office tower, 108,785-square feet of retail and restaurant space and a six-level parking garage accommodating 863 automobiles.

“The sale of Ocean Plaza is part of Decron’s ongoing business strategy to divest itself of its commercial office assets prior to the possible changes to California’s Prop 13 that would alter the structure of property taxes for commercial properties within the state.” (emphasis added).

Our industry has been warning for years that removing Proposition 13 protections from property owners will directly result in such sell offs reshape the state’s economic activity in ways that may be harmful.  See Decron’s full press release here.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)