Raytheon’s Orange County Campus Sells for $77MM

Raytheon Orange County Cushman & Wakefield Fullerton Hines Oaktree Capital Management 1801 Hughes Dr.
Courtesy of CoStar Group, Inc.

By The Registry Staff

In a significant real estate transaction, Raytheon’s 34-acre office campus in Orange County, California, has recently changed hands for $76.5 million, or roughly $191 per square foot, according to public documents reviewed by The Registry. The 400,000-square-foot office complex, located at 1801 Hughes Dr. in Fullerton, has been under the full ownership of Massachusetts-based defense contractor Raytheon since 1985.

The Raytheon campus was acquired by a San Gabriel-based entity affiliated with Alethea Hsu. The sale was expertly brokered by Cushman & Wakefield’s team that included Nico Napolitano, Jeffrey Cole, Jeff Chiate, Rick Ellison, Scott Selke, and Brad Brandenburg, according to industry reports.

The property has a storied history of value appreciation, according to industry reporrts. In 2012, it was sold to real estate firm Hines and Los Angeles private equity firm Oaktree Capital Management LP for $18 million. Subsequently, in 2016, it was part of a ground lease sale for an additional $18 million.

The property’s allure lies in its status as one of Orange County’s largest and well-positioned sites. Nico Napolitano, one of the seller’s representatives, noted that the asset’s 1985 lease agreement significantly undervalued the property. With a substantial lease term still in place, this transaction represents an opportunity for the new owners to capitalize on the property’s inherent potential.

Raytheon, a renowned defense contractor, has been instrumental in Orange County’s economy over decades. The company has been a tenant at this campus for nearly four decades. Their recent $322.5 million contract awarded by the U.S. military for tube-launched missiles for the U.S. Army reinforces their position as a key player in the region’s defense industry.