Google Acquires Three Buildings in North San Jose for $137.5MM

By Meghan Hall

Google has acquired three buildings at 4550 N. First St., 65 Nortech Parkway and 95 Nortech Parkway in North San Jose for $137.5 million, according to Santa Clara County property records dating to May 15th. The seller was Midpoint237 Company LLC, an entity associated with Trammell Crow Company. The three buildings are situated on a single parcel and total 332,000 square feet.

The deal was arranged by commercial real estate firms Avison Young and CBRE, according to The Mercury News, who first reported on the transaction earlier this morning. The three newest buildings are part of a total portfolio of eight that Google has acquired over the past year in North San Jose, where Google has spent $409.3 million to buy the mix of office and industrial buildings. The total footprint of all eight buildings combined is 1.27 million square feet. The portfolio of buildings is located north of the State Route 237 and North First Street interchange, and according to The Mercury News, six out of eight of the buildings have never been occupied.

In January of 2018, Google acquired the first three buildings—industrial assets located at 5079, 5087 and 5093 Disk Drive—for $117.3 million. Together, they total 563,000 square feet. In a second acquisition that occurred in October 2018, Google purchased two office buildings, which total 377,000 square feet, nearby at 4300 and 4400 N. First Street for $154.5 million.

Google has purchased or acquired property through both CBRE and an entity associated with Trammell Crow previously. Google has purchased multiple properties near Diridon station, spending more than $300 million and acting through a partnership with Trammell Crow to acquire the properties. In July 2017, Google took ownership of 52 parcels in Sunnyvale that Los Angeles-based CBRE Global Investors had been accumulating on the company’s behalf. The total value of the properties, based on previous reporting done by The Registry, was $820 million.

The company has put together a sizeable portfolio of real estate assets across Silicon Valley in recent years, and its latest acquisitions are a glimpse into its ambitions for future growth. Google’s San Jose portfolio alone and its development plans in the city could accommodate more than 20,000 employees in the future, when its projects come to fruition.

West Coast Commercial Real Estate News