Health Net of California | Regional Headquarters

Property Description

This three-story, Class A office building was constructed in 2002 as a build-to-suit for Health Net of California, Inc. which provides managed health care services in California. The company accounts for nearly 80% of the parent company's (Health Net, Inc.) revenues and carries its own stand-alone BBB- (S&P) investment-grade credit rating. The 8.12-acre site enjoys immediate visibility and excellent access from Highway 50, the region's primary east-west freeway, and is part of the master-planned Gold Pointe Corporate Center office park, near Folsom, CA. The tenant occupies approximately 97% of the property's net rentable area with the remaining 3% of net rentable area leased under long-term agreements with the office park association and utilized as a café and fitness center.

Business Essential Attributes

The property serves as one of four commercial hubs for Health Net of California. As a commercial hub, the property houses a full array of functions utilized to support the company's Northern California operations including executive offices, back-office administration, training and conferencing activities, as well as real estate operations. The property is directly connected with the only owned real estate asset in the tenant's portfolio, which is an approximately 80,000 square foot office/data center located in the same office park and serves as the headquarters location of the tenant's IT staff. 

Additional Property Information

Health Net of California has maintained a significant presence in the Sacramento market since the early 1990s taking advantage of the low-cost operating environment and access to a highly skilled employment base. Health Net of California's predecessor formerly owned the land encompassing the entire Gold Pointe Corporate Center office park. Health Net of California has reaffirmed its commitment to the location pursuant to the recent ten-year lease renewal and plans to invest an additional $3.5 million into the property in the near future. Planned improvements involve modernization of the facility, including upgrades to the conference rooms and common areas.

Health Net of California | Regional Headquarters

Rancho Cordova (Sacramento), California

PROPERTY AT A GLANCE

Property Type: Office
Square Footage: 145,869

Lease Expiration: June 2022
Renewal Option(s): None
Rent Increase(s): Annually commencing January 1, 2013  $0.10 per square foot per annum
Tenant: Health Net of California, Inc. (97% of Net Rentable Area)
Website: www.healthnet.com
NYSE*: HNT

*Stock ticker symbol is for Health Net, Inc. The tenant accounts for 80% of Health Net, Inc. revenue.