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.