Office properties with credited tenants in the Bay Area are always interesting to prospective investors. What they are willing to pay for the space has everything to do with goals of the investors and their money, and in some cases, those sums can be very high.
A 64,000 square-foot building in Palo Alto, which was completed in 2016 and today is occupied by Visa, just sold for $138 million, or just over $2,156 per square foot, according to public documents filed with the county. The property at 385 Sherman Avenue was purchased by SVF Sherman Palo Alto, an entity associated with Los Angeles-based American Realty Advisors. The seller was The Minkoff Group, an Oakland-based developer associated with Daniel M. Minkoff.
Berkeley-based brick was the architect on the project.
Visa had announced in July of 2016 that it was opening a new office and taking up the entire space in at the location in Palo Alto. This community is home to some of the greatest breakthroughs in technology, from the first personal computer to the latest in self-driving, connected cars and automated homes, and Visa is excited to have a footprint in middle of it all and to contribute to the spirit of ideas with the next evolution of payment technologies, according to a statement from the company. Visa’s data, research, network processing and loyalty & offers teams are located in the space.
“Everything we do begins and ends with our technology and talent,” said Al Kelly, Visa CEO at the time. “It’s the only way we can continue to lead in the payments industry, which is moving at lightning-speed. The new Palo Alto office is part of Visa’s effort to attract and retain the best people, and to foster collaboration with the organizations based in Silicon Valley.”
“This building is a showpiece for Visa in a great area of the South Bay,” said Chad Leiker, first vice president with Kidder Mathews in its San Jose office, in a statement to the Mercury News. “It’s a crazy high price, but when you have a credit tenant like Visa in there, you can expect this type of thing to happen. There is still a lot of money looking to buy property in Silicon Valley.”
The Minkoff Group and brick also collaborated on 899 West Evelyn in Mountain View, which is the home to Nuance Communications. The property is known for its 13,000-square-foot rooftop garden that includes two 15-foot mature trees, a bocce court, lawn, deck and trellis.