CB Richard Ellis Corporation Partners LLC, a $10-billion investment management arm of CB Richard Ellis, purchased the majority of Sierra Health Services Inc.'s real estate holdings in the Las Vegas area.
Included in the $115 million sale is approximately 550,000 sf of administrative office space and medical clinic facilities. The bulk of the office space is located on the campus of the company's corporate headquarters in northwest Las Vegas, and the clinics are located throughout the metro area.
As part of the deal, Sierra entered into a long-term lease arrangement with the buyers, effective immediately. The initial net proceeds to Sierra are expected to be $61.7 million, which the company will use as an initial payment on its recently amended and restated line of credit.
"We are pleased that we have been able to reach a favorable agreement with CB Richard Ellis Corporate Partners," says Anthony M. Marlon, chairman/CEOof Sierra. "Last summer, we announced a series of initiatives designed to reduce the company's debt load. This latest transaction allows us to make a substantial reduction in our newly amended credit line and improve the company's financial position as we begin 2001."
Sierra Health Services Inc. operates health maintenance organizations, indemnity and workers' compensation insurers, military health programs, preferred-provider organizations and multi-specialty medical groups. The company serves 1.3 million people.
CB Richard Ellis Corporation Partners LLC was formed in 1999 and acts as principal in the acquisition and resale of "credit" and "non-credit" net leased properties and portfolios.
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