OCTA is set to close escrow by October 28 on a building at 2677 North Main St. in Santa Ana that will serve as its new headquarters. The move is expected to save taxpayers approximately $50 million over the next 30 years compared to continuing to lease its current office space.
For more than three decades, OCTA has leased its headquarters at Union Bank Square in Orange but has determined that owning a building would provide greater financial and operational benefits. During the past two years, the purchase of a new headquarters building was discussed numerous times in open and closed sessions.
“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.”
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.
“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.