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Health Care Property Moves to Long Beach

Health Care Property Moves to Long Beach

By VITA REED

Health Care Property Investors Inc., a real estate investment trust specializing in healthcare facilities, has moved its headquarters up the San Diego (I-405) Freeway from Newport Beach to Long Beach.

A need for larger, contiguous office space spurred the move, said Talya Nevo, a Health Care Property spokeswoman.

Technically, the move marks the loss of a big public company for Orange County. Health Care Property counted a market value of $3.8 billion as of last week.

But no workers are expected to be lost in the move, with OC employees now commuting to Long Beach instead of Newport Beach.

Health Care Property employs 47 people, who all have moved to the Long Beach office. Nevo said she didn’t think that any jobs would be added in the move. But there is room if the company’s growth calls for hiring of more workers, she said.

Long Beach was a “reasonable” midpoint for commuters, Nevo said.

“Our officers live as far north as Canoga Park and as far south as San Clemente,” she said.

Health Care Property moved into about 24,000 square feet of space at 3760 Kilroy Airport Way, across from the Long Beach Airport and near the San Diego Freeway.

In Newport Beach, Health Care Property’s offices weren’t connected, Nevo said. The company also wanted to make some technology upgrades that its previous offices weren’t large enough to handle, she said.

The new headquarters is part of the Kilroy Airport Center office complex. Office space in the building runs at $25.80 per square foot per year, according to real estate market tracker CoStar Inc.

That’s a tad less than Health Care Property’s previous offices at 4675 MacArthur Court, where asking rents are $27.84 per square foot per year, according to CoStar.

In terms of moving, Nevo said the process took about six months from the time Health Care Property decided to move until the actual relocation, including upgrades to the new offices. No operations will be retained in OC, Nevo said.

Health Care Property looked for space in OC and other areas, according to Nevo.

“We cast a pretty broad net,” she said. “It came together for us in Long Beach.”

Health Care Property owns nursing homes, hospitals, medical offices and other health-related real estate. As of Dec. 31, Health Care Property’s portfolio of healthcare real estate included 554 facilities in 44 states.

That includes 31 hospitals, 173 long-term care facilities, 124 assisted living and retirement facilities, 196 medical office buildings and 30 other properties. Those numbers include joint ventures with other companies.

For 2003, Health Care Property counted revenue of $400 million, which was up 14% from 2002. The company had 2003 net income of $122 million, which was up 8%.

Last year, Health Care Property completed a transition plan unveiled in 2002. James “Jay” Flaherty III became chief executive and president, replacing Kenneth Roath, who had led the real estate investment trust since its inception in 1985. Roath is Health Care Property’s chairman.

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