In its Form 8-K filing submitted to the Securities and Exchange Commission yesterday, Sunnyvale-based NetApp disclosed that it had entered into an agreement with Mountain View-based Google to sell three buildings for a total of $318.7 million, or close to $837 per square foot, although the purchase also included unimproved land near these buildings. The properties are located at 495 East Java Drive, 475 East Java Drive and 1330 Geneva Drive and total just over 380,000 square feet.
This is not the first time the two companies have traded assets. As reported by The Registry in March of 2016, NetApp had sold eight buildings to Google for $250 million at that time. Those eight buildings totaled nearly 600,000 square feet, making the effective per square foot purchase price at $420.
In this latest instance, the companies entered into an agreement on September 8, with an effective date of the agreement set for September 11, 2017. The total purchase price for the Property is $318.7 million, of which $223.1 million is payable at the first closing and $95.6 million is payable at the second closing, according to the document. The closings are subject to due diligence, certain termination rights and customary closing conditions, including, in the case of the second closing, local governmental approval of the subdivision of a common lot, stated the filing. The first closing is expected toward the latter part of January of 2018, and the second closing is expected for end of October of 2018. These dates can be extended, pursuant to certain conditions set in the agreement. In addition, one of the buildings will continue to be occupied by NetApp, who will lease it back from Google for a limited term. The building and the terms of the lease were not disclosed.