By Meghan Hall
Even though Apple has pushed its return to the office to 2022, the COVID-19 pandemic has not deterred the company from investing big in commercial real estate. In a deal that just recently closed, Apple acquired a number of different office assets in Cupertino for a combined $450 million. Apple paid all cash in the deals, according to The Mercury News. The seller of the properties were entities affiliated with Carl Berg, a well-known Bay Area-based developer.
In the largest deal, Apple paid $206 million for 10500 N. De Anza Boulevard. The building totals 211,000 square feet, according to CommercialCafe, and sits on 10.32 acres. The single-tenant office building was originally constructed in 1981 and is currently leased to Apple.
In a second transaction, 20605, 20665 and 20700 Valley Green Drive were purchased for $138.6 million. The assets total about 142,000 square feet and were built in the 1970s, according to CommercialCafe. They are also currently leased to Apple.
In a final transaction, Apple paid $105.4 million for 20400 Mariani Avenue. The asset totals 105,000 square feet.
The acquisitions come just several months after Apple signed up to take 700,000 square feet in Sunnyvale. Apple is expected to take space at 600, 650, 700, 725 and 750 N. Mary Avenue, and additional space at 625 Palomar Ave., located in Pathline Park. The campus is being developed by Irvine Company and includes 1.3 million square feet of space on 42 acres.
Experts in the commercial real estate industry are hopeful that the office market will continue to improve after California’s full opening in mid-June. A report released by JLL notes that big tech companies in particular have stabilized the office market during the second quarter. Net absorption reached positive numbers over the past few months, totaling 129,015 square feet. JLL noted that even though tech firms may have placed some decisions on hold, there were still 2.3 million square feet of active requirements in the Silicon Valley market.