L.A. Care inks huge lease in Rising Realty’s Garland Building

The healthcare company already occupies some space at the 9-story tower

May.May 17, 2019 11:00 AM
LA Care CEO John Baackes and the building at 1200 West 37 Street
LA Care CEO John Baackes and the building at 1200 West 7th Street

UPDATED, May 17, 1:30 p.m.: The largest publicly-operated healthcare company has signed one of the largest leases in Los Angeles so far this year.

L.A. Care Health Plan inked a deal to occupy 370,000 square feet at a Rising Realty Partners-owned building, located in the outskirts of Downtown L.A. at 1200 West 7th Street, the companies announced Thursday.

The healthcare provider is already occupying some space at the Garland Building, though most of its 2,000 employees are based in another Downtown L.A. office nearby. Its new lease starts in 2024.

Spread across nine floors, the 733,000-square-foot Class A tower boasts roughly 386,000 square feet of office space, a subterranean data center and 112-seat auditorium.

Existing tenants at the site include other government agencies like the L.A. Police Department, L.A. Housing and Community Investment Department and Economic & Workforce Development Department. They will be relocated to a new city office being built on the former Parker Center site once it is completed, the Los Angeles Times reported.

Clay Hammerstein of CBRE represented L.A. Care. John McAniff of JLL represented Rising.

Rising paid $210 million to acquire the building, dubbed the Garland Building, in 2016, property records show. The prolific developer teamed up with H.I.G. Realty Partners and Silverpeak Real Estate Partners for the complicated deal, which included two ground leases.

The company, led by newly appointed CEO Chris Rising, recently announced a plan to invest more than $300 million in properties in the Western U.S. over the next two to three years. It will focus the bulk of that investment in commercial properties in new markets, such as Salt Lake City and Portland.

Related Articles

Jose Huizar gave new details Monday on Pershing Square redesign (Credit: Getty Images and Wikipedia)

An embattled Jose Huizar revives Pershing Square redesign

LA promo

Coming Soon: The Real Deal Los Angeles’ Winter 2020 issue!

From left: Howard Schwimmer and Michael S. Frankel, with 1601 W. Mission Boulevard and 2757 E. Del Amo Boulevard (Credit: Google Maps)

Rexford Industrial adds to LA portfolio with $100M in acquisitions

Andrew McDonald and At Mateo in the Arts District

Cushman’s West Coast chief talks expansion, DTLA market, the death of the starving baby broker & more

3339 Exposition Blvd. and Asher Luzzatto

Luzzatto Co. assembling creative office hub in West Adams

Jason Illoulian and the Cemex plant

Faring makes $30M assemblage play on WeHo/LA border

From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman

Graymark, Nuveen pay $97M for El Segundo creative office

La Mirada industrial building

Clarion pays $77M for La Mirada industrial project