By Meghan Hall
Google’s expansion beyond its home base of Mountain View continues with the tech company’s purchase of two additional office building in North San José for $154.5 million, according to Santa Clara public documents. Located at 4300 and 4400 North First Street, the buildings are both three stories and have a combined total of 377,000 square feet, meaning that Google paid roughly $410 per square foot for the properties. The offices have the potential to house between 1,800 and 2,000 employees. The transaction was all-cash.
According to public documents, the property last changed hands in 2007, when Washington, DC-based The Carlyle Group purchased the property. Harmonic, a telecommunications developer, also currently occupies space at 4300 North First Street. More recently, The Carlyle Group procured a five-year floating rate loan in August 2017 to refinance the property for $84.78 million; Holliday Fenolgio Folwer, L.P. (HFF) worked on behalf of The Carlyle Group to secure the deal, according to a statement from the firm.
The Carlyle Group also worked with global design firm NELSON Architecture to reposition the two Class A properties on the site over the last couple of years. New building amenities include a rooftop deck, a fitness and workout area and a multi-functional all-hands space — all features that are typically known to be popular with large tech companies such as Google.
The transaction is representative of Google’s growing commitment to San José and the greater Bay Area; the tech giant began accumulating property in San José several years ago with the aim of producing a large corporate village and transit-oriented development near Diridon Station capable of supporting between 15,000 to 20,000 new employees. Google revealed its plans to for the village — which include a park and cultural and innovation walk — to the San José Station Advisory Group in May 2018.
In January, Google also purchased three warehouses in the Midpoint@237 complex for $117.3 million; the warehouses are located just down the street from its new North First Street office buildings. 4300 and 4400 North First Street is also within ten minutes of the Santa Clara Convention Center, Levi’s Stadium and California’s Great America. A shopping centered anchored by a Target and a Chick-Fil-A is located just on the other side of the Southbay Freeway.
The largest city in The Bay Area, San José is increasingly becoming a hub for major tech companies as increased buzz around major tech expansion in the area has catalyzed companies to snap up space. Google has been just one, but perhaps the most significant one buying up space in the area, further contributing to the development buzz across the South Bay region.