By Meghan Hall
Two big-name companies have struck a deal for a sizable campus in the Peninsular towns of Belmont and Redwood City. At the end of August, Blackstone affiliate BioMed Realty purchased an office complex plus adjacent land for a total of $160 million. The seller of the property was Oracle, and the deal closed on August 31, according to public documents.
The office campus itself is located at 301, 401 and 501 Island Parkway. Public documents show that BioMed paid $144.575 million, or about $631 per square foot for the campus. According to BioMed’s website, the property is currently developed with three, fully-vacant buildings totaling 229,000 square feet.
Just adjacent to the property, BioMed acquired 6.5 acres of land for $15.4 million. The parcel can accommodate 350,000 square feet of future development. It is unclear at this time just how BioMed will approach potential development of the site.
The property is close to State Routes 101 and 82, Bay Club Redwood Shores, the Hillsdale Shopping Center, and more. Other companies, from Nintendo to Shutterfly, are also located nearby.
Oracle originally placed the asset up for sale at the beginning of the year, according to industry reports, and over the past few months, the tech giant has sold several assets throughout the Bay Area. In May, the company sold its San Jose offices for $155 million, or about $409 per square foot. The buyer of the asset–known as 488 Almaden Boulevard–was Lane Partners.
BioMed is one of the largest–and most well-known–developers of life science and technology assets across the United States. The company’s portfolio includes 14 million square feet of assets in concentrated metros, including Boston/Cambridge, San Diego, Seattle and the San Francisco Bay Area. Currently, the company has roughly 2.8 million square feet of Class A properties in active construction.