Boeing

Boeing Realty Corporation (BRC), a wholly owned subsidiary of The Boeing Company (NYSE: BA), announced today that it will sell approximately 48 acres of undeveloped land adjacent to Boeing's Space and Communications Group headquarters in Seal Beach.

The sale of the surplus, vacant land will have no impact on employment at the Boeing Seal Beach site.

Approximately 44 acres of the total acreage is located southwest of the main campus and has never been developed by Boeing. The remaining 4 acres are located at the northeast corner of the site and is currently a paved surplus parking area. The property is zoned light-industrial/manufacturing.

"Boeing is proud to have Seal Beach as its headquarters for the Space & Communications (S&C) Group," said Jim Albaugh, Boeing S&C president. "Boeing plays a vital role in the economy of this state, and the surplus land sale in Seal Beach is just one way that we are working to minimize costs and increase our competitiveness as we grow our business in California."

BRC has been working with the city of Seal Beach to "master plan" a quality business park that would complement the adjacent Boeing Seal Beach facilities and operations and add value to the surrounding area. Master planning involves securing entitlements for roadways and other development requirements. BRC intends to build the interior streets and utilities infrastructure for the business park and sell land to corporate tenants.

BRC's Seal Beach master-planned development will be similar to the McDonnell Center Business Park at Bolsa Ave. and Springdale St. in Huntington Beach, Calif., according to Phil Cyburt, president of BRC. At that site, BRC accomplished a successful land sales program of 90 acres to various corporate tenants, including Konica, Sharp Electronics and AirTech Industries. "That development was win-win situation for the city of Huntington Beach, which increased its economic base, and for Boeing, which was able get non-performing assets off its books at a profit," Cyburt explained.

Boeing has been focused on an aggressive effort to optimize production and the utilization of its facilities and shed surplus "lazy" real estate assets throughout all organizations.

"We are in a good economic cycle and are experiencing a very tight market for developable land for sale," Cyburt added. "We plan on taking advantage of the substantial increase in land prices to bolster the profitability of the company without limiting Boeing's production capacity."

Seal Beach Mayor Paul Yost added, "We are looking forward to working with Boeing on ideas that would maintain or enhance our quality of life while providing low-impact economic opportunities."