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GROUP HEALTH PLANS MOVE
TO SOUTH LAKE UNION
- Vulcan will develop two buildings totaling 320,000 square feet for Group Health's new headquarters
SEATTLE, WA – September 21, 2005
Vulcan Inc. and Group Health Cooperative have signed a letter of intent to develop a new building complex in Seattle's South Lake Union neighborhood that will house Group Health's headquarters.
Under the terms of the agreement, which is subject to final approval from Group Health's member-governed Board of Trustees, Vulcan will develop a two-building, mixed use, 320,000-square-foot project. Group Health will move its administrative headquarters from its current location at 6th Avenue and Wall Street in Seattle's Belltown neighborhood to the new location and lease 185,000 square feet as the anchor tenant.
The new facility will house about 700 of the nearly 10,000 staff of Group Health Cooperative, Group Health Permanente, and Group Health Options, Inc., including the executive leadership team. The deal will be structured as a lease and a joint venture, with Group Health leasing nearly 60 percent of the project and sharing an ownership interest, and Vulcan managing the development.
“We conducted an exhaustive review of the market to determine the best location for our administrative headquarters. Vulcan worked with us to create a package that is cost effective, favorable for our employees and supports our business objectives," said Jim Truess, executive vice president and chief financial officer for Group Health. "We're excited about what's happening in South Lake Union. This area is home to some of the world's leaders in health care and life sciences research, such as the Fred Hutchinson Cancer Research Center, the Bill & Melinda Gates Foundation, UW Medicine, Seattle Biomedical Research Institute and Rosetta Inpharmatics/Merck.”
“We are delighted to work with Group Health so they can relocate their headquarters to South Lake Union,”said Ada M. Healey, vice president of real estate for Vulcan. “Group Health's talented workforce will add even more energy and intellectual capital to the neighborhood. South Lake Union continues to be the location of choice for world-class companies seeking close proximity to downtown and an innovative and urban environment.”
Healey added,“With a real estate team that's now grown to more than 40 professionals, we are structured to provide a full range of development services to create a headquarters location for one of the region's premier organizations.”
“Group Health's new headquarters in South Lake Union will keep one of our most important health care organizations in Seattle,” said Seattle Councilmember Richard Conlin. “As a 25-year member of Group Health, I am happy to see this organization continue to be a vibrant part of our community.”
Occupying a full city block bordered by Westlake Avenue North to the west, Terry Avenue North to the east, Harrison Street to the north and Thomas Street to the south, the development will consist of two buildings--one six-stories and one four-stories. Construction is scheduled to begin in early 2006, and occupancy is expected to occur in late 2007.
As the anchor tenant in the 320,000-square-foot complex, Group Health will occupy 185,000 square feet. The four-story building on the east block will include 129,000 square feet of office space and 6,000 square feet of retail. The six-story building on the west block will include 160,000 square feet of office and 25,000 square feet of retail. Approximately 100,000 square feet of office and 31,000 square feet of retail would be available for lease to other tenants.
Vulcan is planning to develop the building as a sustainable, eco-friendly facility that will qualify for LEED certification. LEED, which stands for Leadership in Energy and Environmental Design, is an industry measurement tool created by the U.S. Green Building Council to define green, environmentally and community-conscious projects.
Callison is the architect for the project and GLY is the general contractor. Group Health was represented by the Trammell Crow Company, which provides comprehensive real estate services for all of Group Health's real estate activities. Trammell Crow brokers for the deal include Thomas Abbott and Ray Attisha. Vulcan represented itself.
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ABOUT VULCAN REAL ESTATE
Vulcan Real Estate directs all real estate strategies for Vulcan Inc., a Paul G. Allen company. Through strategic acquisitions and innovative development, Vulcan Real Estate creates a diversified portfolio of high-performing, quality assets. The company’s experienced, talented team of real estate professionals offers a full range of development services from site selection to build-to-suit construction. Its real estate model is based on quality, sustainable development that builds new value across the entire community. For more information, visit www.vulcanrealestate.com.
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ABOUT GROUP HEALTH COOPERATIVE
Founded in 1947, Group Health is a consumer-governed, nonprofit health care system that coordinates care and coverage. Based in Seattle, Group Health and Group Health Options, Inc., serve nearly 550,000 members in Washington and Idaho. Group Health's commercial and Medicare plans have received the top rating of "Excellent" from the National Committee for Quality Assurance (NCQA).
Group Health encompasses medical and specialty centers, hospitals (including a full service community hospital), a nationally recognized research center, and a charitable foundation. Group Health and Group Health Permanente (its multispecialty medical group practice) combined employ over 9,000 staff, equivalent to one of Washington's largest employers. Please visit the virtual newsroom on our Web site, www.ghc.org under “Newsroom.”
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