SACRAMENTO—Capri EGM, a leading investment company specializing in corporate sale leaseback and build-to-suit financing, and the acquisition of institutional quality single-tenant office, industrial and retail net lease properties, has acquired a critical corporate office campus for Blue Shield of California. The purchase price for the property was not disclosed.Blue Shield of California is the third largest healthcare provider in California with $13.4 billion in revenue and is rated A by Fitch.

The corporate office campus is leased to Blue Shield of California under a long-term net lease.

The office campus is located at the intersection of Zinfandel and International Drives, adjacent to the center of Rancho Cordova's commercial district, 14 miles from downtown Sacramento. The long-term net lease includes contractual annual increases, which equates to built-in rent growth.

Significant capital improvements were recently made at the property, making this location one of Blue Shield's most desirable locations. The property's updates include extensive interior, exterior, roof and mechanical; first-class finishes; cutting-edge technology; and state-of-the-art infrastructure. This location is part of Blue Shield's goal to consolidate its operations to a more central location in the Sacramento region and represents a significant investment for the company. The company anticipates that approximately 1,100 of its employees will ultimately work at the campus.

“This transaction illustrates our focus of identifying and owning operationally critical assets leased by leading companies on a long-term basis in strategic markets within the United States. By unlocking value through creative structuring and capital efficiency, we are committed to building long-term value for our institutional and corporate partners. The acquisition is consistent with our established strategy, providing durable cash flows, escalating annual rents, and attractive risk adjusted returns over time and across a variety of market conditions and economic cycles. Coupled with the long-term leases and the financial strength of Blue Shield of California, we believe that this acquisition will be a solid addition to the Capri EGM portfolio,” says Shelby E.L. Pruett, Capri EGM's co-chairman and chief executive officer.

Blue Shield and its affiliates provide health, dental, vision, Medicaid and Medicare health care service plans in California. The not-for profit health plan provider serves more than 4 million members and 65,000 physicians throughout the state. Blue Shield is the third largest health care provider in California, with a 15% market share, and the second largest provider in the Covered California insurance marketplace with 27% market share. Blue Shield of California also carries an investment grade credit rating of A per AM Best Rating Services as well as an A+ rating from Weiss Ratings.

The corporate office campus is leased to Blue Shield of California under a long-term net lease.

Instant Insights /

Capri EGM Acquires Blue Shield of California Campus

Related Stories

Recommended For You