CHICAGO IL – 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, announced today that it has acquired a critical corporate office campus for Blue Shield of California. Blue Shield of California is the 3rd 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 purchase price for the property was not disclosed.
Capri EGM announces acquisition of Blue Shield of California (Fitch: A)
The Blue Shield of California (Fitch: A) corporate office campus is located at the intersection of Zinfandel Drive and International Drive sits adjacent to the center of Rancho Cordova’s commercial district, 14 miles from downtown Sacramento.
- Industry-leading healthcare provider: Blue Shield and its affiliates provide health, dental, vision, Medicaid and Medicare health care service plans in California. According to its web site, the not-for-profit health plan provider serves over 4 million members and 65,000 physicians throughout the state, has annual revenues of approximately $13.4 billion. Blue Shield is the third largest health care provider in California, with a 15 percent market share. Blue Shield is the second largest provider in the Covered California insurance marketplace with 27 percent market share. Blue Shield of California carries an investment grade credit rating of “A” per A.M. Best Rating Services as well as an “A” per Fitch Ratings, and an A+ rating from Weiss Ratings.
- Mission critical facility: 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. Significant capital improvements and investments were recently made at the property making this location one of Blue Shield’s most desirable locations.
- Long-term net leases with built-in rent growth: The long term net lease includes contractual annual increases. The property benefits from significant capital investment, has extensive interior, exterior, roof and mechanical upgrades, first-class finishes, and cutting-edge technology and state-of-the-art infrastructure.
Investment Management Company Comments
Shelby E.L. Pruett, Capri EGM’s Co-Chairman and Chief Executive Officer, commented: “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.”
Capri EGM is a real estate investment manager focused on the net lease, sale-leaseback, and build-to-suit commercial markets, providing investment programs for institutional investors and capital solutions for corporations. A venture with Capri Investment Group, Capri EGM is headquartered in Chicago, Illinois. Since 1992, Capri and its predecessor organizations have acquired, originated, and managed over $10 billion in commercial real estate investments directly and through entity level investments. Diversified assets managed on behalf of Capri’s pension fund and other institutional investors totaled approximately $3.6 billion as of March 31, 2016. Please visit capri-egm.com for more information about Capri EGM.
This press release contains forward-looking statements within the meaning of the Federal securities laws. The comments of Mr. Pruett and statements regarding the acquisition of the Blue Shield of California Office and the characteristics of the property and market are examples of forward looking statements. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any security relating to Capri EGM or any of its entities’ funds or investment vehicles. Any offer or solicitation may be made only through the delivery of a definitive Private Offering Memorandum and all information contained herein is qualified in its entirety by such Memorandum.