ROCKFORD, IL-A Los Angeles-based investor has acquired a77,200-square-foot office building 100% leased and occupied by BlueCross Blue Shield of Illinois for the next 10 years. The high-networth individual bought the 11-year-old building from aChicago-based investor for $12.3 million.

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The buyer used proceeds from a 1031 exchange out of amultifamily property in California, according to Craig Tomlinson ofStan Johnson Company. He represented the buyer in the transaction,while Kevin Lynch of Sperry Van Ness represented the seller.

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Tomlinson tells GlobeSt.com that the Blue Cross Blue Shieldproperty is the second acquisition the exchange buyer has purchasedin the Chicagoland area. Earlier this month, the investor closed ona 128,000-square-foot office building in suburban Chicago that isnet leased to Verizon Wireless until 2017.

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Situated on 10.5 acres at 2787 McFarland Rd., the Blue CrossBlue Shield property is one of two customer service centers in theupper Midwest that serve the company’s health insurance clients. Itwas a build-to-suit property with a 20-year absolute net lease. Itwas sold in a sale-leaseback to Boston-based CRIC in 2000 beforetrading to the Chicago-based owner.

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“My buyer was really focused on the credit of Blue Cross,”Tomlinson says. “The health care industry continues to grow andprovides commercial real estate investors an attractive investmentfor buyers looking for stability.”

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Tomlinson adds that the buyer also was attracted to the absolutenet lease. “He paid more money on this deal because it’s absolutelycarefree,” he says.

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Tomlinson is working with the Los Angeles-based investorcomplete his 1031 exchange requirements and is still evaluatingdifferent investment opportunities.

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