Blue Cross, Realty Firm Agree to Develop 32-Acre Warner Site
Blue Cross of California said Tuesday that it has reached a tentative agreement to join with a Chicago real estate concern to jointly develop the 32 acres surrounding Blue Cross’ headquarters in Woodland Hills.
The land, which has grassy open space, trees and parking lots in addition to Blue Cross’ 14-story headquarters, is in the Warner Center area and is bordered by Oxnard Street, Canoga Avenue, Erwin Street and Owensmouth Avenue.
Blue Cross, one of the state’s largest health insurers, plans to develop the land with an affiliate of JMB Realty Corp., a major real estate investment firm that already owns Blue Cross’ headquarters building and eight surrounding acres. Blue Cross owns the remaining 24 acres of land.
The companies did not release terms of their agreement and said that plans for developing the property are still being decided. But they indicated that their plans would extend the office, residential and retail development that already distinguishes Warner Center.
Blue Cross’ announcement came after the company spent nearly a year mulling proposals from 19 companies seeking to develop the property, said spokeswoman Jeannette M. Hartman.
Density Concerns
When Blue Cross said last year that it would entertain bids, some local homeowners expressed concern about increased density and traffic in Warner Center. In a statement Tuesday, Blue Cross President Leonard D. Schaeffer said any Blue Cross/JMB development would occur after “thorough consideration of the impact on the neighborhood as well as the company.”
Blue Cross’ decision to help develop the land underscored how the company’s recent financial problems have been abating, allowing the company to avoid having to sell the land quickly to raise cash.
In 1988, Blue Cross lost $9.1 million, contrasted with a $56-million loss the previous year. And in this year’s first quarter, Blue Cross earned a $700,000 profit, compared to a loss of $31.1 million over the same period in 1988.
