( CNN ) -- If one California lawmaker has his way , his cash-strapped state may have an arresting real estate listing on the market : San Quentin State Prison . San Quentin prison houses more than 5,300 inmates , including Scott Peterson . State Sen. Jeff Denham is proposing selling the 432-acre prison , which offers a breathtaking view of San Francisco Bay , to garner money for California . `` Our inmates just do n't need an ocean view . Let 's level it off , '' said Denham , a Republican . `` Let 's rebuild something for the community there and reap the benefit for the state by having that money come in , '' he added . Denham estimates that the property could sell for as much as $ 2 billion , even amid a down market . On Tuesday , lawmakers put the proposal to sell the prison in a `` holding pattern , '' said Jann Taber , a spokeswoman for Denham . Watch CNN 's Dan Simon report from San Quentin » . State Sen. Mark Leno , who chairs the state 's public safety committee , said the committee was holding the proposal under a policy that allowed lawmakers and residents to give further thought to legislation that could exacerbate overcrowding in California 's prisons . Taber said it could be brought up again this year or next . The prison houses more than 5,300 inmates , including Scott Peterson , according to the department of corrections . However , even with the waterfront property , putting the prison on the market may be a hard sell , especially if a new prison had to be built . `` This is a really good facility , '' Bob Sleppy of the California Department of Corrections said . `` It 's existing ; it 's operating ; it 's well-operated over the years by custody staff . It serves an immediate need . '' He said that building another facility to house the inmates might be troublesome . `` Communities seldom welcome a new prison , '' he said , adding that constructing a prison to replace San Quentin could cost $ 2 billion , the very price tag Denham suggested . The idea of selling San Quentin , which opened its doors in 1852 , has been raised before , but it never received much support because of California 's chronic problem of overcrowded prisons . California is near 200 percent capacity in its prisons , and selling San Quentin could make the problem worse , said Leno , a Democrat . He said there were no precise numbers available showing the value of San Quentin 's property or what it would cost to build a prison to replace it . `` Again , we have no actual numbers right now , '' he said , adding , `` I would guess , at best , it would come out a wash. '' Real estate consultant Stephen Roulac said San Quentin 's land could be used for condominiums , parks or community-type buildings . `` We would love to see a performing arts center prospectively here , possibly a museum , possibly a tie-in with a university , '' he said . Lawmakers have approved $ 356 million to build a death row facility to replace the existing one at San Quentin , and some say that is another reason to consider selling the prison . `` Does it make sense anymore in the year 2009 to continue to invest in expanding this prison facility on the most prime piece of real estate in Northern California , or should we finally start to think about some non-correctional uses for this unique property ? '' asked state Assembly member Jared Huffman , a Democrat . Denham has tried twice to pass legislation to sell San Quentin . His efforts in 2007 and in 2005 never made it out of committee , his office said .
432-acre waterfront property could sell for $ 356 million , Sen. Jeff Denham says . `` Our inmates just do n't need an ocean view , '' Jeff Denham says . Critics say building new facility for inmates would be costly , time-consuming . San Quentin is near 200 percent capacity in its prisons ; more than 5,300 in California .