Raytheon Sells HQ to Build New 150,000-SF Facility

The defense contractor sold its facility in Lexington to a joint venture amongAtlantic Management of Framingham, MA, Mohawk Partners of Concord, MA,and Peabody Global Real Estate Partners of New York. The sale of thefacility, which is comprised of three buildings totaling 361,000-sf of space, is expected to close in the fourth quarter of 2002. Two of the buildings are used for corporate staff, while the third building is used as a laboratory. The company says that proceeds of the sale will be used to fund the new headquarters.

A company spokesperson would not reveal the terms of the deal, but she emphasized that the company was looking to move to more modern facilities that would be more efficient and could ultimately lower costs of operations. Last year, the company went through a series of layoffs, but the spokesperson told GlobeSt.com at the time that the relocation had nothing to do with that. She says that the new facility will accommodate the majority of the company's corporate staff, and employees who do not relocate to the new headquarters will move to other facilities in the state.

Raytheon will take a long-term lease on the new 10-acre parcel from the Massachusetts Medical Society. Leggat McCall Properties LLC will develop and build the facility. Construction is expected to be completed by the fourth quarter of 2003. Insignia/ESG acted as real estate advisor to Raytheon in the disposition and acquisition.