Google Continues to Snap Up Land in Sunnyvale’s Moffett Park, Buys 16 Acres for $95.6MM

Google, NetApp, Sunnyvale, Yahoo, Moffett Park, Kilroy Realty, Chesapeake Commons, Moffett Park Business Group
Rendering Courtesy of City of Sunnyvale, BIG, Google

By Meghan Hall

Bit by bit, Google is continuing to expand its portfolio throughout Sunnyvale and has acquired an additional 16 acres in a deal that closed at the end of August. According to The Mercury News, who first reported the transaction, Google bought half of a nearly 30-acreparcel from NetApp, a data management firm headquartered in Sunnyvale, for $95.6 million.

CBRE represented Google in the transaction. Phil Mahoney, Andy Hueser and Jack Troedson of Newmark Knight Frank represented NetApp.

The parcel is bounded by Crossman Ave., East Caribbean Dr., Geneva Dr., and East Java Dr.; satellite imagery shows that NetApp currently has four buildings on the 30-acre campus. Google’s CRSM1265 complex is located just across E. Java Dr. from the property, and many other technology firms from Atlantis Computing and Texas Instruments call north Sunnyvale home. 

Over the past two years, Google has spent more than $2 billion in northern Sunnyvale alone. 

The acquisition comes after Google spent $1 billion on Yahoo’s headquarters complex in what is likely to be one of the region’s largest real estate transactions of the year. The deal, which closed in July, covered nine addresses for properties located along First Ave., Java Dr., Bordeaux Dr. and North Mathilda Ave.

At the beginning of July, Google also purchased 1272 Borregas Ave., a two-story, 78,324 square foot office building for $58.1 million. In 2018, the technology firm also acquired Kilroy Realty’s Chesapeake Commons for $160.3 million.

Many of the parcels that Google has acquired — including its latest purchase from NetApp — are located within Moffett Park in the northern most portion of Sunnyvale. Identified as a Class A industrial area, Moffett Park contains 1,156 acres with a mix of start-up, mid-size and Fortune 500 companies. According to the Moffett Park Business Group, an estimated 40,000 people currently work in Moffett Park.

However, Google’s plans to bring more of workers to the area became clear when it initiated plans to construct a 1.042 million square foot office project on 40.5 acres of land within the Moffett Park district. The project was initially proposed in January of 2018 and is expected to bring 4,500 Googlers to north Sunnyvale. In the Fall of 2018, Google proposed a second major redevelopment project in Moffett Park for 400,000 square feet of space on 20 acres of land, which would accommodate about 2,000 workers, according to previous industry reporting. If approved, both projects would continue to solidify Google’s long-term and deep-running commitment to one of the Bay Area’s most sought-after tech cities in Silicon Valley.

West Coast Commercial Real Estate News