The tenant has planned $3.5 million in improvements.

(Save the date: RealShare Los Angeles comes to the Hyatt Regency Century Plaza in Los Angeles, CA, on March 27, 2013.)

EL SEGUNDO, has learned exclusively that Griffin Capital Corp., on behalf of Griffin Capital Net Lease REIT Inc., has acquired a three-story, approximately 146,000-square-foot class-A office building in the Sacramento town of Rancho Cordova, CA, for $22.65 million. Health Net of California Inc., a managed healthcare provider, occupies 97% of the building, while the remaining 3% is leased to the Gold Pointe Corporate Center Association, which provides a café and fitness center as amenities for the building employees and the office park. The seller has not been disclosed.

Originally developed in 2002 as a build-to-suit, the property serves as the tenant’s primary Northern California commercial hub and is home to a wide array of business functions including back-office administration and training and conferencing activities, as well as executive offices. Health Net executed a lease renewal in February, extending its decade long-commitment to the site for an additional 10 years. The tenant has also planned an additional $3.5 million in improvements.

According to Louis Sohn, Griffin Capital’s SVP of acquisitions, the purchase price “affords our investors the ability to benefit from a healthy current risk-adjusted return on an institutional-quality office building long-term leased to an investment-grade-rated tenant.”

Marcus & Millichap‘s third-quarter office market report reveals that the foundation for an office-market recovery in Sacramento is falling into place after several quarters of anemic and choppy fundamentals since vacancy peaked at the end of 2009. Annual growth in office-using employment has moved into positive territory for the first time since late-2006, a promising sign for absorption. In addition, the metro’s low prices are luring some firms away from the neighboring Bay Area, where effective rent growth is the highest in the country. Healthcare providers and call centers are finding the price differential enough incentive to relocate in order to cut costs.

Since January 1, the portfolio has grown by approximately 160%, based on purchase price. As of September 30, it was 96.8% leased, with a weighted average remaining lease term of approximately 9.4 years and leverage of 32.8%.

As previously reported, Griffin Capital is being particularly careful about the properties it chooses in the near future. According to Michael Escalante, the firm’s CIO, who spoke on a panel during RealShare Net Lease West in Los Angeles last month titled “Investment Strategies for 2013,” “We’re only going to buy seven properties next year, so we have a selective acquisition strategy. We have a lot of balls in the air at any given time.” He added that there is creativity in terms of deal structuring and that 70% of his firm’s properties are investment grade.