The owner of one of the nation’s biggest parking lot businesses is expanding his parking properties in his hometown of Chattanooga.

Real estate partnerships formed by Republic Parking Owner Jim Berry recently bought most of a downtown block across from the Republic Centre for more parking and office space. BlueCross and BlueShield of Tennessee, which is consolidating its local staff next year in a new corporate headquarters, sold the former Hub Furniture building and other parking properties to Mr. Berry’s group as part of the insurer’s plans to sell or give up leases in a half dozen downtown buildings.

Mr. Berry will gain nearly 200 parking spaces through a $2 million purchase of the parking lots and 43,000 square feet of office space in a related deal with an undisclosed purchase price, according to county property records. Mr. Berry and his partner, Steve Hunt, said they are looking at various alternatives for the Hub building after BlueCross vacates in June.

“The Hub building has played a significant role in Chattanooga history and we are excited to be involved in the future opportunities of this and the other properties,” said Mr. Berry, a partner in the local real estate firm, Berry & Hunt.

Mr. Hunt said the four-story Hub building “is located on one of the very best corners in downtown Chattanooga” and could be used for first-floor retail or financial services businesses and office tenants on the upper floors.

The structure is within a block of Mr. Berry’s 21-story Republic Centre, Chattanooga’s tallest downtown building, and within a four blocks of Mr. Berry’s Pioneer Building, 811 building and One Central Plaza.

“We are 'bullish' on our downtown as we have been for over 20 years,” Mr. Hunt said.

BlueCross officials said they received multiple offers for the Hub building and adjacent parking lots, which the company has owned since 1982.

“The sale of the Hub building demonstrates the strength of the real estate value in downtown Chattanooga, despite the worldwide financial crisis,” said Dan Jacobson, vice president of properties and corporate services for BlueCross.

NAI Charter Real Estate President David DeVaney, one of the agents marketing BlueCross’ properties, said downtown “remains very attractive even in a slow market” and he continues to receive inquiries about other BlueCross office buildings.

“The vacancy rate for Class A office space in Chattanooga is under 5 percent and Class B office space has a vacancy rate of only 12 percent, so Chattanooga is in a much stronger position than most cities,” he said.

But that vacancy rate will likely increase next year when BlueCross, the state’s biggest health insurer, plans to vacate a half dozen downtown buildings and relocate its 3,800 Chattanooga employees into the $299 million office complex being built atop Cameron Hill, including nearly 200 employees who now work in the Hub building.

BlueCross continues to market its Gold headquarters building on Pine Street, the Miller Brothers office building along Sixth Street between Market and Broad streets and a 462-slot parking garage between Broad and Chestnut Streets, Mr. DeVaney said.

“Financing is obviously more difficult in this environment, but we are still seeing good activity and solid interest in these buildings,” he said.

BlueCross will maintain ownership in its Gateway buildings on West M.L. King Boulevard as part of its development on Cameron Hill.

The 96,180-square-foot Gold building headquarters being sold at 801 Pine St. includes 326 underground parking spaces and the 176,925-square-foot Miller Building up for sale at 629 Market St., has an underground passageway that connects to BlueÇross’ 426-space parking garage on Broad Street, Mr. DeVaney said.