LA Care Signs on for 370K SF Lease in Office Consolidation
By Alison Stateman May 17, 2019 6:25 pm
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Health-plan provider L.A. Care Health Plan signed on for 370,000 square feet at 1200 West 7th Street, a commercial office property owned and operated by Rising Realty Partners, according to a company release. It marks the first major leasing deal for Rising Realty since Chris Rising was named CEO in January of this year.
L.A. Care already occupies space at the property, but a majority of its 2,000 employees are currently located a few blocks away at 1055 7th Street. The lease will span all nine above-ground floor and consolidate the entire staff in one location.
“By consolidating all of our employees under one roof, we will see significant cost savings and improve collaboration,” John Baackes, L.A. Care CEO, said in the statement. “The 1200 building has a much more user-friendly floor plan that will let us operate in 63,000 fewer square feet and that will result in millions of dollars in savings each year.”
The consolidation will commence in 2024 upon the expiration of the current tenant, the City of L.A.’s lease. The 347,000-square-foot below-ground data center, West 7 Center, however, will remain on premises.
“We recently renovated 1200 West 7th Street to make it more attractive as a headquarters building. This lease not only validates that effort but also signifies an expansion of the DTLA submarket’s western boundaries,” Rising told Commercial Observer.
Clay Hammerstein of CBRE represented L.A. Care and John McAniff of JLL worked on behalf of Rising Realty Partners in the transaction. Further lease details were not available.
