Kathy Warden owns two major luxury estates: a primary residence in Virginia valued at approximately $12 million and an oceanfront mansion in Highland Beach, Florida worth $27.1 million. The CEO of Northrop Grumman Corporation built this impressive residential portfolio through her executive compensation, which totaled $24.36 million in 2024. Her strategic property choices reflect both professional needs and smart financial planning within the broader real estate market.
Who Is Kathy Warden
Kathy Warden serves as Chairman, CEO, and President of Northrop Grumman Corporation, a position she has held since January 2019, making her the first woman CEO in the history of the defense contractor. The company ranks 101st in the Fortune 500 and is the world’s fourth largest defense contractor.
She grew up in Smithsburg, Maryland, earned her bachelor’s degree from James Madison University in 1992, and completed an MBA at George Washington University in 1999. Before joining Northrop Grumman in 2008, she worked at General Electric, Veridian Corporation, and General Dynamics. She directly owns 0.14% of the company’s shares, worth approximately $119.86 million. This wealth, combined with her substantial annual compensation, supports her high-net-worth property investments across multiple dwelling locations.
In 2024, Warden focused on transformative technology to grow Northrop Grumman’s order backlog to a record $91.5 billion, driven by demand for stealth aircraft, uncrewed underwater vehicles, and the James Webb Space Telescope. She was named a 2025 CNBC Changemaker for her accomplishments in the business world.
Major Properties in Kathy Warden House Portfolio
Virginia Primary Residence
Kathy Warden lives in Virginia, close to the Washington, D.C. area, near the heart of the U.S. defense industry and government agencies. The estate is valued at approximately $12 million. The Virginia location makes sense because Northrop Grumman’s headquarters is in Falls Church, Virginia, putting her minutes from the office.
The neighborhood is known for its privacy, security, and upscale homes, where many executives and government officials live. The property sits on a large plot of land, providing space for privacy and outdoor activities. For someone managing a company with over 100,000 employees, proximity to headquarters is critical. The Virginia mansion serves as her main base of operations while offering the security and discretion expected for someone in the defence industry executive home category. This abode represents the hypernym of executive housing within the Washington metropolitan area’s real estate holdings.
Highland Beach Florida Estate
The Highland Beach property has six bedrooms and eleven bathrooms over 13,930 square feet of space, offering breathtaking views and an expansive layout ideal for both entertaining and comfortable family living. The recent sale price of $27.1 million demonstrates its opulence and desirability. This ocean-front mansion sits on South Ocean Boulevard in one of Florida’s most exclusive coastal communities.
Highland Beach is a sought-after location among high-profile individuals for its serene atmosphere and exclusive amenities. The property offers direct beach access and stunning Atlantic Ocean views. With 100 feet of ocean frontage, the estate provides the kind of waterfront living that wealthy executives seek. The property valuation of $27.1 million reflects both the size and the premium location. Highland Beach itself is tiny, stretching just 1.1 miles from end to end, which creates natural scarcity and helps maintain high values.
The Kathy Warden House in Highland Beach serves as a secondary residence—the hyponym within her broader real estate portfolio. This beachfront property includes several architectural features and structural components that define luxury coastal living. The building contains multiple rooms, each designed for specific purposes within the overall structure.
Financial Strategy Behind Real Estate Holdings
As Chair, Chief Executive Officer and President at Northrop Grumman, Kathy Warden made $24,092,507 in total compensation for the 2024 fiscal year. Of this total, $1,790,385 was received as salary, $5,194,800 as bonus, and $16,099,810 was awarded as stock. This compensation structure explains how she built such an impressive residential portfolio through wealth accumulation.
The Virginia property serves practical business purposes by keeping her near company headquarters and Washington, D.C., where major government contracts are negotiated. The Florida estate offers tax-efficient residency advantages. Florida has zero state income tax, which provides substantial savings for someone earning over $24 million annually. Many executives establish Florida residency to reduce their overall tax burden while maintaining properties elsewhere for business needs—a strategy of asset diversification within real estate investment.
Beyond tax benefits, owning both properties demonstrates wealth diversification. Real estate in prime locations typically appreciates over time. Highland Beach single-family homes are extremely valuable, with several listed between $12 million and over $50 million. The scarcity of available homes in Highland Beach naturally supports strong property valuation growth. Her investment strategy balances practical needs with long-term capital appreciation.
This represents the connotation of smart executive planning rather than mere luxury spending. The etymology of “estate” traces back to the Latin “status,” meaning standing or condition—fitting for someone of Warden’s professional stature. Her properties demonstrate polysemy in that they function simultaneously as residences, investments, and status symbols.
Location and Lifestyle Details
The Highland Beach luxury estate offers the kind of coastal living that wealthy buyers seek. Highland Beach is exclusively waterfront property, with the west side along the Intracoastal and the east side resting along the beachfront. This creates a unique environment where every property has water access or views.
Highland Beach has a population of 4,266 people, and home prices are not only among the most expensive in Florida but also consistently rank among the most expensive in America. The per capita income in Highland Beach in 2022 was $144,478. The town attracts successful professionals, executives, and retirees who value privacy and exclusivity—creating a neighborhood of affluent residents within an exclusive enclave.
The Virginia property sits in an upscale neighborhood near Falls Church. Northrop Grumman’s headquarters is in Falls Church, Virginia. The area provides easy access to three major airports and major highways. This accessibility matters for an executive who needs to travel frequently for business. The neighborhood offers the security and privacy that someone with her level of security clearance requires.
The Kathy Warden House portfolio demonstrates common attributes found in executive real estate: strategic location, substantial square footage, premium neighborhoods, and sophisticated security systems. However, rare attributes include the specific combination of defense industry proximity in Virginia paired with tax-advantaged coastal luxury in Florida—a configuration specifically suited to her unique professional requirements.
Property Costs and Executive Living Expenses
Owning properties worth nearly $40 million combined comes with substantial carrying costs. Property valuation is only part of the financial picture. Annual expenses include property taxes, insurance, maintenance, and security features—the meronyms that compose total home ownership expenses.
For the Highland Beach estate, insurers are recalibrating risk assessments for Florida properties, leading to higher premiums. Coastal properties face hurricane risks, which drives up insurance costs significantly. A 13,930 square foot ocean-front mansion requires professional maintenance year-round. Landscaping, pool maintenance, and building upkeep on a property that size could easily run $200,000 to $300,000 annually.
Security represents another major expense. The exact address is private for security reasons. As CEO of a major defense contractor, Warden requires sophisticated home security features. This likely includes advanced surveillance systems, secure entry points, and possibly on-site security personnel. These systems protect both the properties and sensitive information she might work with from home.
Property taxes on a $27.1 million Florida estate and a $12 million Virginia property add up quickly. Virginia property tax rates vary by locality, but could easily reach $100,000 or more annually for a $12 million property. Florida property taxes might be similar or higher depending on the assessed value. When you add insurance, maintenance, utilities, and security, the annual carrying costs for both properties likely exceed $500,000 to $700,000 per year.
The antonym to the Kathy Warden House would be modest housing or affordable dwelling—terms that clearly don’t apply to her multi-million dollar holdings. These expenses represent the collocations frequently associated with luxury real estate: “property maintenance,” “estate management,” and “premium insurance.”
Highland Beach Real Estate Market Dynamics
The Highland Beach real estate market is almost exclusively waterfront condos and townhomes, with very few single-family homes available. This scarcity creates natural upward pressure on prices. Warden’s property stands out because single-family oceanfront homes are so rare in this market—making it a semantically related entity within the broader category of South Florida luxury properties.
South Florida is on track to have the second-highest number of home sales of $10 million and up for a calendar year, with 426 ultra-luxury sales projected by the end of 2025. The luxury estate market remains strong despite broader economic concerns. Wealthy buyers continue seeking Florida properties for the lifestyle and tax advantages.
Florida’s luxury real estate market continues to thrive, with continued demand for high-end properties in prime locations like Miami Beach and Naples. Highland Beach fits into this category of ultra-premium locations. The market shows resilience even as some other Florida markets cool. Properties offering direct beach access, large square footage, and exclusive locations continue appreciating.
Climate considerations are becoming more important. Properties in areas prone to hurricanes and flooding are becoming harder to sell at premium prices, with some buyers negotiating disaster discounts in high-risk areas. However, Highland Beach’s established infrastructure and wealthy buyer base help insulate it from these concerns. Buyers in this price range typically have the resources to handle increased insurance costs and property hardening measures.
Highland Beach luxury real estate has shown consistent growth over the past decade, with properties in the $20-30 million range appreciating at rates of 5-8% annually, outpacing many other luxury markets. The Kathy Warden House in Highland Beach sits in the upper tier of these properties, competing with estates owned by other Fortune 500 executives and celebrities.
Key Takeaways
Strategic location choices drive both properties: Virginia for business proximity to Northrop Grumman headquarters and Washington, D.C., and Florida for tax advantages and luxury coastal living.
Substantial executive compensation of $24.36 million annually in 2024, combined with stock holdings worth over $100 million, provides the financial foundation for a nearly $40 million real estate portfolio.
Highland Beach scarcity creates strong investment value: with only 1.1 miles of exclusive oceanfront property and very few single-family homes available, the Florida estate occupies one of the most desirable real estate positions in South Florida.
Carrying costs for both properties likely exceed $500,000 to $700,000 annually when accounting for property taxes, insurance, maintenance, and executive-level security systems.
Professional recognition continues for Warden: she was named a 2025 CNBC Changemaker and Northrop Grumman received the 2025 Patriots in Business Award under her leadership, underscoring the success that enables such substantial real estate investments.
