ROCKFORD, IL-A Los Angeles-based investor has acquired a 77,200-square-foot office building 100% leased and occupied by Blue Cross Blue Shield of Illinois for the next 10 years. The high-net worth individual bought the 11-year-old building from a Chicago-based investor for $12.3 million.
The buyer used proceeds from a 1031 exchange out of a multifamily property in California, according to Craig Tomlinson of Stan Johnson Company. He represented the buyer in the transaction, while Kevin Lynch of Sperry Van Ness represented the seller.
Tomlinson tells GlobeSt.com that the Blue Cross Blue Shield property is the second acquisition the exchange buyer has purchased in the Chicagoland area. Earlier this month, the investor closed on a 128,000-square-foot office building in suburban Chicago that is net leased to Verizon Wireless until 2017.
Situated on 10.5 acres at 2787 McFarland Rd., the Blue Cross Blue Shield property is one of two customer service centers in the upper Midwest that serve the company’s health insurance clients. It was a build-to-suit property with a 20-year absolute net lease. It was sold in a sale-leaseback to Boston-based CRIC in 2000 before trading to the Chicago-based owner.
“My buyer was really focused on the credit of Blue Cross,” Tomlinson says. “The health care industry continues to grow and provides commercial real estate investors an attractive investment for buyers looking for stability.”
Tomlinson adds that the buyer also was attracted to the absolute net lease. “He paid more money on this deal because it’s absolutely carefree,” he says.
Tomlinson is working with the Los Angeles-based investor complete his 1031 exchange requirements and is still evaluating different investment opportunities.
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