L.A. Care Health Plan has signed a 370,000-square-foot lease for an office building downtown, the company announced May 16.

The building is at 1200 W. 7th St. City employees currently in the building will move into a new office building being built nearby for city workers, according to 1200 W. 7th St. landlord Rising Realty Partners.

L.A. Care plans to save money by consolidating its employees in the building. The lease will start in 2024.

Right now, L.A. Care has some employees at 1200 W. 7th St. Most of its 2,000 employees are a few blocks away.

“By consolidating all of our employees under one roof, we will see significant cost savings and improve collaboration,” said John Baackes, chief executive of L.A. Care, in a statement. “The 1200 building has a much more user-friendly floorplan that will let us operate in 63,000 fewer square feet and that will result in millions of dollars in savings each year.”

CBRE Group Inc.’s Clay Hammerstein represented L.A. Care in the lease. Jones Lang La Salle Inc.’s John McAniff represented Rising Realty Partners.

Commercial real estate reporter Hannah Madans can be reached at [email protected]. Follow her on Twitter @HannahMadans