Broadcom buys its Irvine office building

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Set us as preferred Computer chip and software developer Broadcom purchased the Irvine office compound it rented in the latest example of a well-funded company taking advantage of depressed real estate prices to switch from renter to owner.Broadcom paid its former landlord, PRP Real Assets, $325 million for the 660,000-square-foot research campus near the junction of the 5 and 405 freeways in one of the largest office sales in Southern California in recent years.The unusual deal was a reacquisition for Broadcom, which developed the property as an office and research-and-development complex before selling the campus for roughly $443 million in 2017.At that time, it agreed to lease it for 20 years, real estate data provider CoStar said.

PRP acquired the campus for $355 million in 2020.The campus consists of two five-story office buildings at 15101 and 15191 Alton Parkway.Business Companies are buying their buildings instead of renting them as office values bottom out around Los Angeles.Completed in 2017 and 2018, the campus was designed to be Broadcom’s corporate headquarters with significant research-and-development capabilities.Broadcom, now based in Palo Alto, is one of the world’s largest semiconductor and infrastructure software companies.

It makes components for iPhones, optical networking and other products.Through acquisitions of other tech firms, the company has assembled a portfolio of 17 owned properties totaling more than 2.2 million square feet, according to CoStar data.“You rarely see an Orange County office deal of this size, and almost never from an occupier rather than an investor,” said Jesse Gundersheim, a senior director of market analytics for CoStar.

“Broadcom is taking control of a campus that is already critical to its business.”Companies occupying their own buildings accounted for 34% o...