Google continued its insatiable appetite for Silicon Valley real estate earlier this month with another purchase in its home town, Mountain View. The internet juggernaut acquired the three building property located 2629 Terminal Boulevard, a 3.3-acre lot that includes three buildings of roughly 44,000 square feet. The per square foot price comes to roughly $682. The seller was a Mountain View entity associated with Rees Properties, which had owned the buildings since January of 2015, when it paid $14 million, or roughly $318 per square foot. The Silicon Valley Business Journal first reported the transaction.
Rees also sold a neighboring parcel to Google in March of this year for $31,888,000, according to public records, making Google the owner of the entire block.
Googles transaction comes on the heels of a massive transfer of property that the company orchestrated with its partner CBRE Global Investors just weeks ago. In that deal, Google has taken over the ownership of 52 parcels in Sunnyvale that Los Angeles-based CBRE Global Investors has been accumulating over the last few years on its behalf.
Google has amassed a formidable portfolio of real estate assets across Silicon Valley over the years, and its latest was its push into downtown San Jose. Google’s interest in transforming an integral part of Downtown San Jose received an initial green light by City Council at a June 20 hearing. Council authorized the City to execute an Exclusive Development Agreement, allowing conversations between Google and the City to commence regarding the company’s possible purchase and development of City-owned property in and around Diridon Station. Google will be working with its development partner, Trammel Crow, to potentially build transit-oriented office, retail, mixed-use and R&D development on land within the confines of the Diridon Station Area’s 240 acres.
But San Jose Mayor Sam Liccardo is still cautiously approaching the opportunity. “Lots of big plans are launched to fanfare, but the world changes – economies dip, shareholders balk, and corporations pivot. History offers San Jose too many cruel reminders: the groundbreaking of the Tesla factory in North San Jose a decade ago, Apple’s plans for a Coyote Valley headquarters in the 1980’s, and the like,” Mayor Liccardo stated. “The Council and City Hall need to focus on doing whatever we need to do to eliminate barriers – legal and regulatory obstacles, red tape, and other hurdles – to facilitate these extraordinary investments in our city.”