LONG BEACH, CA-Scan Health Plan, a not-for-profit Medicare advantage plan, has completed a lease renewal and expansion transaction for a 202,804-square-foot office space at Kilroy Airport Center. The lease has a 12-year term.
Scan renewed its lease for the approximately 153,000 square feet of office space it already occupies at the Kilroy Airport Center, and added an additional 50,000 square feet of space to the new lease. As a result of the expansion, Scan will now occupy two buildings at the multi-building complex, located at 3800 Kilroy Airport Way.
Scan has been in a continual growth mode for several years,” Janice Cimbalo, one of the Jones Lang LaSalle brokers that represented Scan in the transaction, tells GlobeSt.com. “They anticipate continuing to grow with the advent of the Affordable Care Act, and have been constrained in the space they are in now. The floor space at the 3080 building provided them with a good expansion opportunity and allowed them to maximize their operations in the park.” Cimbalo adds that Scan is a leader in workplace strategy, and that the park layout along with Scan's anticipated growth will “facilitate a new and continued emphasis on an alternative workplace.”
Several health care insurers have recently expanded their office spaces to accommodate forecasted growth from the Affordable Care Act roll out next year. L.A. Care Health Plan recently signed up for an additional 47,306-square-feet of office space at the Garland Center in Downtown Los Angeles, bringing its total leased square footage to 100,915 square feet.
Allen Matkins attorneys Delmar Nehrenberg and Brian Michel provided legal counsel to Kilroy Airport Center while Robert Garey, Robert Alperin and Kimbal Wasick of Cushman and Wakefield brokered the deal on Kilroy's behalf. Attorney Dennis Ghan of Palmieri, Tyler, Wiener, Wilhelm and Waldron and Jones Lang LaSalle brokers Tony Morales, Tom Turley, Jordan Kissel and Cimbalo represented Scan in the transaction.
In addition to growth driven by the Affordable Care Act, Long Beach in general has seen increased absorption due to office space formerly occupied by Boeing. “Long Beach has had an interesting ebb and flow with Boeing leaving the buildings right across the tarmac from Scan,” says Cimbalo. “One is purchased and is going to be occupied by the port, and another has been nearly filled in the last year-and-a-half by various tenants that are mostly full floor.”
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Kelsi Maree Borland
