EL SEGUNDO, Calif., April 11, 2013 (GLOBE NEWSWIRE) -- Griffin Capital Corporation announced today the acquisition of the HealthSpring Operational Headquarters, a 170,515 square foot, Class A office campus located in Nashville, Tennessee, built within the last two years to the tenant's specifications (the "Property"). The Property is 100% occupied by HealthSpring, Inc. ("HealthSpring") on a triple-net basis for a remaining lease term of nine years. The Property functions as HealthSpring's operational headquarters and houses its network operations, sales and marketing, finance, human resources and executive leadership departments. HealthSpring, headquartered in Nashville, Tennessee, was acquired by Cigna Corp. in January 2012 and is one of the country's largest and fastest-growing coordinated care plans whose primary focus is Medicare Advantage plans.
The Property is located in the MetroCenter submarket, Nashville's oldest and largest master-planned mixed-use business park. Located within one mile of four Interstates (I-65, I-40, I-24 and I-440), MetroCenter is accessible to the entire employee base of Middle Tennessee and Kentucky and is within a 20-minute drive of 75% of the Nashville's population. The Nashville International Airport and John C. Tune Regional Airport are within a 15 minute drive of MetroCenter.
Griffin Capital purchased the Property for $36.4 million, which represents a 7.44% initial capitalization rate on in-place rents and equates to $213 per square foot. The seller and developer of the building is Southeast Venture, a Nashville-based commercial real estate company, whom Griffin will retain as property manager. CB Richard Ellis assisted Southeast Venture in the sale.
"This is an ideal acquisition for our firm and investors given the institutional quality of the new buildings, the dynamic, growing market in Nashville, the credit quality of the tenancy and long-dated lease, and the importance of this building to the tenant's business operations," said Don Pescara, Griffin Capital's Managing Director, Acquisitions. "This is exactly what we and our investors look for in a transaction, and we hope to find others, in Nashville and elsewhere, that match this attractive opportunity," added Pescara.
About Griffin Capital Corporation
Griffin Capital Corporation ("Griffin Capital") is a privately-owned real estate investment company headquartered in Los Angeles. Led by senior executives each with more than two decades of real estate experience collectively encompassing over $16.0 billion of transaction value and more than 650 transactions, Griffin Capital and its affiliates have acquired or constructed over 17 million square feet of space since 1996. Griffin Capital and its affiliates currently own and manage a portfolio consisting of over 13.4 million square feet of space, located in 28 states and representing approximately $2.2 billion in asset value. Additional information about Griffin Capital is available at www.griffincapital.com.
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