Tag Archives: HealthSpring

HealthSpring’s MetroCenter Campus Sells for $36.4M to Los Angeles Investment Company

Southeast Venture partnerships developed and owned property

HealthSpring

Los Angeles-based real estate investment company Griffin Capital Corporation has purchased the HealthSpring MetroCenter campus for $36.4 million, Southeast Venture officials announced today.

The two 72,163 and 98,352 square-foot office buildings, at 500 and 530 Great Circle Road in Nashville, were sold by partnerships controlled by Southeast Venture, a local diversified commercial real estate and design services company that designed and developed the property.

This is Griffin Capital’s first purchase in Nashville.

“It is a great time to invest in Nashville, and this campus is an ideal acquisition for our firm,” said Don Pescara, managing director of Griffin Capital. “We really like the combination of an attractive, new, build-to-suit real estate property, located in a dynamic, growing market, coupled with the long term lease to such a creditworthy company—that stability of cash flow is what we and our investors are looking for.”

“We’re very pleased with this investment and hope to find others with similar characteristics,” Pescara added.

The first phase of the HealthSpring campus opened in August 2011. The second phase of construction completed on time in May 2012. The project sits on just over 21 acres on Great Circle Road overlooking Amulet Lake.

HealthSpring2

“We bought this land in MetroCenter in 2007 with an eye towards developing a build-to-suit facility. Bringing an out-of-state investor into Nashville with this sale really validates our decision to invest in the MetroCenter submarket,” said Cam Sorenson, principal for Southeast Venture. “With its attractive proximity to downtown Nashville, MetroCenter is well positioned to capture more businesses that require high-density office environments. We’re excited to continue to help this area grow and flourish.”

The one-story HealthSpring facilities are located on a campus with ample green space and a 997-space parking area. The two U-shaped buildings mirror each other, with a connecting courtyard in between that serves as an inviting public space where employees can gather for events, lunch or meetings.

HealthSpring, which was acquired by Cigna Corp. in January 2012, uses the campus as the primary location for more than 1,000 of HealthSpring’s 3,600 employees.

CB Richard Ellis Brokers Douglass Johnson and Steve Preston assisted Southeast Venture in the sale.

“There was phenomenal interest from numerous U.S. and global investors for HealthSpring’s office campus, reflecting a continued flight back into the net lease property sectors. Long-term leased, mission-critical facilities located in strong markets like Nashville, are highly desired as they offer investors secured and stable yields over an extended period,” said Johnson. “Private capital and institutional investors alike are taking advantage of cheaper and more abundant capital, creating a very competitive environment for the best income producing properties.”

Southeast Venture’s property management arm will continue to handle the property’s long-term operation and maintenance.

Less than 30 acres of undeveloped land remain in MetroCenter, which is less than 10 percent of the business park’s total usable land of approximately 650 acres.

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Nashville CRE Week in Review: Week of May 27

Nashville CRE Links

  1. 7 Questions answered about Gaylord’s Marriott deal — Nashville Business Journal (link)
  2. HealthSpring campus marks growth for Nashville’s MetroCenter — Nashville Business Journal (link)
  3. Market Trend: Nashville’s Retail Vacancy Decreases to 7.2% — The CoStar Group (link)
  4. Marriott buying Gaylord brand — Nashville Post (link)
  5. Nashville hotels sprucing up — Tennessean (link)

Nashville CRE Week in Review: Week of May 20

Nashville CRE Links

  1. Cheekwood takes $725,000 loss on land sale — Nashville Business Journal (link)
  2. OneCity looks to lure anchor tenants — Nashville Post (link)
  3. RFID in Healthcare Consortium commits to Nashville medical mart lease — Tennessean (link)
  4. Vanderbilt’s Alumni Hall to get $11.3 million renovation — Nashville Business Journal (link)
  5. Southeast Venture to Deliver Phase II of HealthSpring Campus — CoStar Group (link)

Nashville CRE Week in Review: Week of May 13

Nashville CRE Links

  1. Demand climbs for Nashville warehouse, distribution space — Nashville Business Journal (link)
  2. HealthSpring’s local job growth on track — Nashville Post (link)
  3. Medical Mart backers shake off rumors — Nashville Ledger (link)
  4. Nashville-area transit projects receive $1.65M — Tennessean (link)
  5. Report: Nashville manufacturing ranks in the middle of the pack — Nashville Business Journal (link)

HealthSpring Completes MetroCenter Campus

We’re excited to announce today the on-time completion of the second phase of HealthSpring’s new MetroCenter campus located at 500 and 530 Great Circle Road in Nashville.

HealthSpring MetroCenter Site Plan

The two office buildings, totaling 175,000 square-feet, serve as the primary location for more than 1,050 of HealthSpring’s 3,600 employees, with future capacity for 1,260 employees. Prior to the completion of the new campus, which conveniently accommodates operations in one location, year-over-year growth had spread HealthSpring’s MetroCenter operations across three different buildings.

“The new building provides a light-filled, welcoming space that enhances productivity, allowing our valued employees to work comfortably as they serve the needs of our customers,” said Herb Fritch, president of HealthSpring. “The increased space has already contributed to job creation and we hope it continues to allow HealthSpring to support the growth of the local economy and the healthcare industry.”

HealthSpring has made more than 260 local hires since the first phase of the campus opened in August 2011. Additionally, building the site contributed to several construction-related jobs.

“Building each of the two offices employed approximately 125 people in the field in construction and other building-related jobs,” said Dean Taylor, Jr., owner of T.W. Frierson Contractor, Inc. “Additionally, every job in the field supported two jobs in the offices and shops of the contracted firms working on the project.”

The facility was developed and is owned by Southeast Venture and our co-investment partners. Southeast Venture’s in-house design services group served as architect and interior design firm for the project, and our property management arm will handle all day-to-day aspects of the property’s long-term operation and maintenance.

Integral partners in the HealthSpring development included T.W. Frierson Contractor, Inc. and Harvest Construction Company.

The project was constructed on 21.10 acres on Great Circle Road overlooking Amulet Lake. The one-story facility is located on a campus with ample green space and a 997-space parking area. The two U-shaped buildings mirror each other, with a connecting courtyard in between that serves as an inviting public space where employees can gather for events, lunch or meetings.

Ribbon cutting

Phase II Ribbon Cutting – May 14, 2012

Highlights of the HealthSpring campus include:

  • Expansive wrap-around windows to provide ample natural light for all employees, not just those in offices, as in most office buildings
  • Landscaped outdoor courtyard with sunken seating
  • Multiple dining areas with café-like atmosphere
  • Shared business amenities, such as training rooms and conference rooms, grouped in the center of each building, creating a ‘town center’ for the office ‘neighborhood’

With the HealthSpring building complete, just 53 acres of undeveloped land remain in MetroCenter, which is less than 10 percent of the business park’s total usable land of approximately 650 acres.

HealthSpring Campus Named Office Development of the Year

The Nashville chapter NAIOP has named our HealthSpring MetroCenter office campus the 2012 Office Development of the Year. Additionally, Southeast Venture Principal Michael Finucane won the Industrial Lease of the Year for brokering Griffin Technology’s lease of a new distribution facility in Interchange City. Both awards will be presented at NAIOP’s annual gala Feb. 23 at the Franklin Cool Springs Marriott.

In June 2011, HealthSpring executed a lease with us for Phase II of its MetroCenter office campus at 530 Great Circle Road. When complete, the campus will house employees from two of the three buildings HealthSpring currently occupies in MetroCenter.

We broke ground on Phase I of development in November 2010. Phases I and II of the project total 175,000-square-feet of office space and 997 parking spaces. The development sits on 21.10 acres overlooking Amulet Lake.

Southeast Venture’s in-house architecture and interior design group provided the design for the project and the firm’s property management arm will handle all day-to-day aspects of the property’s long-term operation and maintenance.

Our partnership with HealthSpring has been a truly valuable for us and for MetroCenter – a partnership that we hope to continue for a long time. It’s been an exciting project to spearhead and see through completion. Phase I of construction has finished and employees have moved in. Phase II is scheduled to wrap up in May.

Integral partners in the HealthSpring development included T.W. Frierson Contractor, Inc., Harvest Construction Company, Hodgson & Douglas, LLC and Barge Cauthen & Associates.

Michael Finucane

Michael Finucane

With the Industrial Lease of the Year award, NAOIP recognized Michael’s role in the leasing of 518,400-square-feet at 1706 Heil Quaker Blvd. by Griffin Technology. The site in Interchange City serves as a distribution facility for the firm.

Michael joined Southeast Venture in 1997 from the Trammell Crow Company, where he managed their Nashville industrial portfolio. At Southeast Venture, he concentrates primarily in brokering office and industrial transactions.

In addition to Griffin Technology, Michael has represented such clients as H.G Hill Realty, Duke Realty, Digital Reasoning, Espaces, Essex Technology Group, Spectra Metal, Thompson Caterpillar, Kemberton Healthcare and Cumberland Consulting Group.

In 2011, Southeast Venture completed over 758,000-square-feet of industrial leasing, making it  one of our best years on record in the industrial sector. These transactions represented new leases in the LaVergne market and helped absorb a lot of vacancy. We were fortunate to have the opportunity to work with some expanding clients at a time when the market was ready for some good deals.

Nashville CRE Week in Review: Week of Oct. 30

Nashville CRE Links

  1. Correct Care Solutions moving to a bigger Nashville office — Nashville Business Journal (link)
  2. HealthSpring sale faces Delaware suit (link)
  3. HealthSpring stays on course — Tennessean (link)
  4. Major medical R&D campus planned for Charlotte Avenue — Nashville Business Journal (link)
  5. Music Row tower sells, renovation planned — Nashville Business Journal (link)