Medica Buys Its Minnetonka Headquarters for $42M
Major Minnesota health insurer Medica recently paid $42 million to acquire its Minnetonka headquarters.
Medica spokesman Greg Bury told Twin Cities Business that the nonprofit organization has been leasing the five-story building—located at 401 Carlson Parkway—since 2004.
“We purchased the building to ensure that we would have it long-term for our needs and employees,” he said, adding that buying the property will reduce Medica’s operating costs.
Medica bought the 215,000-square-foot, Class A office building from Minnetonka-based Carlson Real Estate Company. Bury said that “Carlson’s been great for us” and the company will continue to serve as the building’s property manager.
The deal closed August 31. According to Hennepin County Property records, the estimated market value of the property is $30 million.
There are a couple of reasons Medica finds the building attractive, Bury said. “It’s a convenient location for our employee base” and “the floor plan allows us to change things as needs change.”
Roughly 1,200 Medica employees work at the Minnetonka complex that’s home to the just-purchased building. Most of them work in the 401 building, but “a couple hundred” work in leased space at 301 Carlson Parkway, Bury said. Aside from the two Minnetonka buildings, a small number of sales staff work at regional offices outside of the Twin Cities.
Based on revenue, Medica is one of the three largest health care insurers that sell plans within Minnesota.