by Mary Jo Pitzl – Jan. 7, 2010 12:00 AM
The Arizona Republic
Arizona’s state buildings will go on the market next week, as state officials look to raise $735 million to boost the state’s depleted coffers.
The offer, which includes Veterans Memorial Coliseum on the state fairgrounds, the headquarters of the Department of Public Safety and legislative buildings, will go on the market Tuesday and Wednesday, said Alan Ecker, spokesman for the Department of Administration.
Investors can buy certificates of participation in the buildings in $5,000 increments by working through the state’s underwriters, Morgan Stanley and Citi. Ecker said the certificates, which are tax-exempt, will likely carry an interest rate of 4 percent to 5 percent. State officials say they’re confident they can sell certificates for all of the buildings involved, based on the queries they received since the sale-leaseback was announced.
However, Ecker said there’s no push to complete the entire sale-leaseback next week. If market conditions look favorable down the road, some of the sale may be delayed, he said.
