Google Buys Sunnyvale Land for $21MM

Google, Silicon Valley, Silicon Valley Business Journal, San Jose, Mountain View, Trammell Crow, Auzerias Avenue, Los Gatos Creek, Orchard Supply Hardware, National Retail Properties, Sierra Greens, Googleplex

By Vladimir Bosanac

Google is leaving very little, if any, available land that is in proximity to its growing Silicon Valley footprint. In what seems like a relatively small pick-up deal, the Mountain View-based technology giant took over a 5-acre, triangular piece of land in Sunnyvale that was the site of the Onizuka Air Force Station. The deal, which has not closed yet, was reported by the San Jose Mercury News to be valued at $21 million, according to a staff report by the city of Sunnyvale.

The piece of land is comprised of two parcels, both owned by the city of Sunnyvale’s Housing Division, according to public documents They are right next to the Google occupied structures at 809 11th Ave., which are owned by the San Francisco-based Jay Paul Company. The site is also just to the south-west of a slew of buildings and properties Google had purchased in the Moffett Park area, where Google has been expanding its presence.

While it is not certain at this point in time what the company intends to do with the property, the fact that it had been owned by the city’s housing division could signal that perhaps it might be intended for that purpose. The company had indicated in the past that it would be open to providing housing as part of its effort to ease the acute Bay Area issue.

The Onizuka Air Force Station was a United States Air Force installation that was operational from 1960 to 2010. The station was home to the Air Force Systems Command operational unit known as the Air Force Satellite Test Center (STC, colloquially called the “stick),” and other non-Air Force Systems Command operational organizations, according to a Wikipedia post describing the property. When the station was opened in 1960, the Sunnyvale area was rural and the station was predominantly surrounded by orchards. By the late 1970s, the region had become Silicon Valley, and the station’s physical security vulnerabilities became apparent. As a result, Air Force Systems Command commenced plans for the Consolidated Space Operations Center (CSOC), which would be located several miles east of Colorado Springs.

On May 13, 2005, Defense Secretary Donald Rumsfeld recommended closing the Onizuka Air Force Station in Sunnyvale as part of the fifth round of military base closures and re-sizing. In April 2007, the mission of the National Reconnaissance Office at Onizuka AFS ended after 46 years, and in April of 2014, the site began a full-scale demolition.

Click on buildings below for more detail on each transaction.

Map courtesy of Google & San Jose Mercury News research

West Coast Commercial Real Estate News