T
he Orange County Transportation Authority has acquired a 220,500-square-foot office building in Santa Ana as its new headquarters for $54.5 million. The 10-story building at 2677 North Main Street was purchased from Irvine-based Muller, with the deal working out to $247 per square foot - higher than the average price paid for similar buildings in the area over the past year.

    The building is currently occupied by tenants including Aetna, Assurant, and LaFollette Johnson DeHaas Fesler & Ames. The OCTA plans to spend an additional $128.5 million on tenant improvements, furniture, fixtures, equipment, moving costs, and other expenses at its new hub.

    The agency's board members and staff argue that owning the building is cost-effective in the long run, with a financial analysis suggesting that leasing comparable offices over three decades would cost $255 million. OCTA CEO Darrell Johnson stated that the acquisition is "a strategic investment in the future of our transportation agency."

    However, some critics have questioned the deal's value, including former state senator Dick Ackerman, who claimed that the agency overpaid and will need to lease out at least two floors to other companies for the deal to make sense. Real estate industry experts, on the other hand, argue that buying an existing building can provide benefits such as quicker occupancy and immediate cash flow through existing tenants, making it a fair price for both buyer and seller.