PacifiCare Health Systems Inc. has signed a $15.7 million lease for 93,535 square feet of space in Cypress. The Santa Ana-based managed care company’s new building is close to subsidiary PacifiCare of California’s home office in Cypress.
PacifiCare of California’s new space is at 5757 Plaza Drive in the Cypress Technology Center, while the headquarters for the division are at 5995 Plaza Drive. PacifiCare of California, with more than 2.2 million commercial and Secure Horizons Medicare members, is the largest unit of PacifiCare Health.
The managed care company leased the space primarily for future expansion, said Cheryl Randolph, a PacifiCare spokeswoman. PacifiCare is unrolling a Medicare supplement insurance product and is gearing up to launch a preferred-provider organization.
PacifiCare Health Systems has been wrestling with a transition in its business landscape. PacifiCare’s net income for the second quarter fell 78% to $15.3 million vs. a year ago, primarily because of rising medical costs. Second-quarter revenue rose 3% to $2.97 billion.
PacifiCare is planning to move certain operations to the new Cypress building, but Randolph said, “We’re not sure who goes where. Now that the lease is signed, we’ll figure it out.”
Randolph indicated a decision could be made in coming weeks.
Layton Belling & Associates is the landlord and was represented by Brian DeRevere, Bob Goodmanson and Brian Bierbaum of CB Richard Ellis. Jeromy Dee of Corporate Realty & Associates represented PacifiCare. n
