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Wednesday, Feb 28, 2024

DaVita Consolidates in Large El Segundo Lease Deal

DaVita HealthCare Partners Inc. wanted to “DaVita-ize” its California presence.

The Denver company, the result of a 2012 merger of DaVita’s kidney care business and Los Angeles-based HealthCare Partners’ physician networks, sought a more modern look for its California offices, with metal, glass and splashes of color in a space where its 800 employees could mix freely.

So the firm chose has chosen to consolidate in an open campus rather than a rising tower that might cordon off its workers into self-contained silos. It has signed a 10-year lease for 185,000 square feet of creative office space at the Apollo at Rosecrans complex in El Segundo. The deal is valued at roughly $115 million.

The move will have the company inhabit a newly renovated 130,000-square-foot building, previously occupied by a defense contractor, and fitted with concrete floors, skylights and a wealth of new windows. The firm will also take 54,000 square feet on the second floor of an adjacent campus building, according to Mike McKeever, a Jones Lang LaSalle senior vice president who represented the health care firm, along with JLL colleagues Gary Horwitz and Kamil Agha, in the deal.

“We’re the largest tenant by far,” said McKeever. “Since we’ve done the deal, rents are up over 20 percent in the project.”

The landlords, Invesco Real Estate and SSV Properties, were represented by Grafton Tanquary and Bob Healey of CBRE Group Inc.

The campus, which also has a large outdoor common area with an amphitheater and barbecues, is close to other nearby DaVita offices and a light-rail station.

“To be able to create a campus environment in an urban setting is challenging,” said Chris Ruzic, DaVita HealthCare Partners’ director of real estate. “It’s been great having an opportunity to effect the finishes. This is really raw space.”

HealthCare Partners’ integrated care corporate support functions are scheduled to occupy the campus in December.

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