Google, the venerable property owner of Mountain View, has added another gem to its ever-growing stable of office assets in Silicon Valley. After three years of occupying the former site of Mountain View’s Mayfield Mall, the company exercised its option to purchase the San Antonio Station for $225.4 million, or roughly $433 per square foot, according to sources familiar with details of the deal.
The 520,000 square foot property was sold by a joint venture of San Francisco and Los Altos-based Four Corner Properties and New York-based Rockwood Capital. The two have owned the property since May of 2012, when they paid $86,083,000, or approximately $165 per square foot, according to public records.
Google has been on a real estate acquisition spree for several years, and this is just the latest in a string of acquisitions for a company that seems to have an insatiable appetite for Bay Area buildings.
In April of 2016 Rialto Capital sold a 50,600-square-foot office asset located in Mountain View to Google after only four months of ownership. In July of 2016, Google purchased a nearly 150,000 square foot asset in San Bruno for $58 million, or nearly $387 per square foot in order to maintain a strong foothold in the north Peninsula city where its video company YouTube is based. Rubicon Point Partners, which has owned the asset in a joint venture with Canyon Catalyst Fund paid $44 million for the property in October of 2014. That same month Google leased the entire 15.5-acre Moffett Gateway project that contains 612,000 square feet of Class A office space with views of the Santa Cruz Mountains and Silicon Valley from Jay Paul Co. These are just some notable transactions from 2016 alone.
And in one of the more interesting and creative grand bargains of Silicon Valley, Google and LinkedIn agreed to swap and acquire a number of properties and undeveloped land between each other. Google agreed to acquire four Mountain View properties all within a mile of each other between Highway 101 and the San Francisco Bay. Three of the sites are part of Shoreline Commons, originally desired by LinkedIn for expansion plans, the fourth is 370,000 square feet of LinkedIn’s office space. On the LinkedIn side, the business networking giant will be giving up former plans for headquarters at Shoreline Commons nearby Googleplex, and instead focus on advancing the build out of a campus cluster off of the Southbay Freeway where Mountain View meets Sunnyvale.
2016 has another quarter to go, and Google may have room for a few more assets in its vast portfolio.