Evelyn Lee covers real estate, economic development and the environment for NJBIZ. She has been a staff reporter here since 2006. 
Horizon Blue Cross Blue Shield of New Jersey has purchased its headquarters building at 3 Penn Plaza East, in Newark, NJBIZ has exclusively learned.
Horizon acquired the 21-story property — which includes 700,000 square feet of Class A office space; ground-floor retail; and a five-story, 400,000-square-foot parking garage — from Secaucus-based real estate developer and owner Hartz Mountain Industries.
“The move will create savings for Horizon,” said Dan Emmer, a company spokesman. “It makes good business sense.” The health care service provider, which has occupied 3 Penn Plaza East for 18 years, had an option to purchase the building during its lease with Hartz, he said.
“By purchasing the building, it shows we’re committed to remaining in Newark,” he added. The company has been based in Brick City since it began operating in 1932, and about 3,000 of its 4,600 employees occupy the headquarters property, he said. Horizon also has a satellite office at 33 Washington St. in the city.
Horizon declined to disclose the purchase price, but Real Capital Analytics, a New York-based commercial real estate market research firm, said the property traded for $145.8 million on March 26.
“We were able to reach a mutually beneficial agreement with Horizon Blue Cross Blue Shield of New Jersey that will allow them to own 3 Penn Plaza East,” Hartz said in a statement to NJBIZ. The deal “allows us to free up capital for future investment."3 Penn Plaza East was built by Hartz in 1992 and renovated in 2004, according to CoStar Group, a Bethesda, Md.-based commercial real estate information company. The developer still owns 2 Penn Plaza East, a 600,000-square-foot office property that is directly adjacent to the Horizon building.
E-mail Evelyn Lee at elee@njbiz.com
