ORANGE – The Orange County Transportation Authority is set to close escrow on a building that will serve as its new headquarters – a move expected to save taxpayers approximately $50 million over the next 30 years compared to continuing to lease its current office space.
The building set to close escrow by Oct. 28 at 2677 North Main St. in Santa Ana is less than a mile from the current OCTA headquarters on Main Street in Orange.
For more than three decades, OCTA has leased its headquarters at Union Bank Square in Orange but after an extensive evaluation process, including the formation of a Real Estate Ad Hoc Committee, the Board of Directors determined that owning a building would provide greater financial and operational benefits.
The purchase was made following a thorough review of multiple options and approved Aug. 12, 2024, by the OCTA Board of Directors. During the past two years, the Board has considered the headquarters purchase eight times during regularly scheduled Board meetings. It was discussed three times in open session and five times in closed session for real estate negotiations. Throughout the process, OCTA was represented by CBRE, a global leader in commercial real estate services.
“The decision to acquire a permanent headquarters is a significant milestone for OCTA,” said OCTA Chair Tam T. Nguyen. “This purchase not only ensures operational efficiency but also represents a long-term financial advantage for our organization and most importantly, the people in Orange County we serve.”
The property at 2677 N. Main Street, built in 1982, sits on 4.6 acres and has more than 220,000 square feet of office space. It meets all the criteria established by OCTA when the search began, including being centrally located in Orange County with good access to bus and rail transit, as well as ensuring sufficient guest and employee parking.
OCTA’s financial analysis shows that the estimated total cost of purchasing and owning the new headquarters, including necessary improvements and operational expenses, is projected at $204.6 million over 30 years. In contrast, continuing to lease comparable office space would amount to approximately $255 million over the same period. By owning the headquarters, OCTA will avoid future rent increases and provide a stable financial foundation for years to come.
The building is also equipped with modern amenities, including LEED Gold Certification and recently installed solar panels, which will contribute to long-term sustainability efforts.
“This acquisition is not just a financial decision, it’s a strategic investment in the future of our transportation agency,” said OCTA CEO Darrell E. Johnson. “We are excited about the opportunities this new location will bring for our employees and the communities we serve.”
The transition to the new headquarters is expected to happen in approximately three years. In the interim, many of the existing tenants will remain as a new board and conference center is constructed and other improvements are made.
For more information on OCTA’s operations, visit www.octa.net.
as well as ensuring sufficient guest and employee parking.
Why not have zero parking so the employees will be motivated to make their subpar transit system better