Company's New Lease is Biggest Signed in City This Year
September 28, 2006
Downtown San Francisco's 50 Beale Street, formerly known as the Bechtel Building, will now be known as the Blue Shield of California Building. The change is part of a new lease agreement signed between the not-for-profit health plan and building owner Beacon Capital Partners that is the largest commercial lease agreement signed in San Francisco in 2006.
In addition to changing the building's name and providing for outdoor identifying signage, the agreement will increase Blue Shield's occupancy from nine to 10 of the building's 23 floors, totaling over 272,000 square feet. The company intends to make significant internal improvements as it expands into the additional space, and has the right to add additional space during the term of the lease.
"Blue Shield of California is committed to keeping our headquarters in the city of San Francisco," said Marianne Jackson, senior vice president for Human Resources. "It's a great place for us to do business and a great place to build the workforce of talented and committed people that we seek. We're happy to have made the investment in staying in the city and in this building and look forward to enhancing our space to improve our productivity further in the coming years."
Blue Shield has made its headquarters at 50 Beale Street since 1996. Approximately 900 of the company's 4,500 employees are based there. The company is deeply rooted in San Francisco, making its headquarters in the city since its founding in 1939. Employees participate actively in community life through events like the AIDS Walk and Heart Walk that reaffirm Blue Shield's mission of providing Californians access to quality health care at reasonable rates, as well as through volunteer days with local charities. Blue Shield also provides support to such institutions as the San Francisco Ballet, San Francisco Symphony, San Francisco Museum of Modern Art, the American Conservatory Theater, and others. Blue Shield of California Foundation, also headquartered at 50 Beale Street, has given more than $8 million to organizations in San Francisco in the past two years.
Brokers for the tenant included Edward Grammens and Monica Finnegan of Trammel Crow Company and Liberty Greenfield representative Ken Gilbert. John Cecconi of The CAC Group was broker for the landlord. Outside counsel included Simon Adams and Charles Seaman in the real estate practice of Reed Smith LLP's San Francisco office for the tenant and Eric Shelby and Alain R'bibo for the landlord.
Background on Blue Shield of California
Blue Shield of California, an independent member of the Blue Shield Association, is a not-for-profit health care company dedicated to providing Californians with access to high quality care at a reasonable price. Founded in 1939, it now has 3.3 million members, 4,500 employees, one of the largest provider networks and more than 20 office locations throughout the state. It is the only health plan serving all of California and only California, providing a wide range of HMO, PPO, Medicare, Healthy Families and administrative services products throughout the state. In 2005, the company contributed $30 million to the Blue Shield of California Foundation to fund nonprofit organizations that improve access to quality health care and work to end domestic violence in California. Contact your local agent or broker for more information about Blue Shield products and services, or visit the Blue Shield website at www.blueshieldca.com.