[Milhous]

Contracts entered into fraudulently may be cancelled.

[truth_seeker]

“Contracts entered into fraudulently may be cancelled.”

And the fraud is? It is not easy to prove fraud in a written real estate contract.

It is essentially a sale-leaseback arrangement.

The state owns real estate free and clear. They agree to sell it for X dollars now, and the state agrees to lease all or part of the building space at agreed rental amounts, for a term, etc.

The parties to such a deal in California are deemed to be sophisticated (unlike buyers/sellers of 1 to 4 units residential).

The parties perform due diligence.

Without knowing anything more, I say the buyer prevails.

[muawiyah]

ANY contract entered into by a state or the federal government may be disposed of quite Constitutionally ~ provided, of course, that "just compensation" is made.

The investment group spent money organizing to buy those buildings ~ and may well have set aside other more lucrative ventures to help out the state. The judge will award them a fee to compensate them for their trouble. The state will retain ownership of the buildings.