By Meghan Hall
Google’s portfolio within the city of Sunnyvale continues to grow, as the tech giant has bought up yet another property, expanding its holdings for future plans in the heart of Silicon Valley. In a deal that closed on June 28th, the tech giant purchased a two-story, 78,324 square foot building located at 1272 Borregas Ave. for $58.1 million, or about $742 per square foot, according to The Mercury News, who first reported the transaction.
The seller was Costa Mesa, Calif.-based Crown Realty & Development, who purchased the property in July of 2016 for $49.08 million, or $627 per square foot, according to public documents.
The building, originally constructed in 1978, was originally the world headquarters for Atari, an electronic entertainment company specializing in arcade and home video games. During its peak years, the company owned and occupied multiple buildings throughout Moffett Park and Sunnyvale. 1272 Borregas Ave. was home to the firm’s 2600 games development. Atari also occupied 1265 Borregas, according to the company’s blog. However, with the collapse of the video game industry in the 1980s, the firm’s tenure in the area ended in 1984.
Google’s interest in Sunnyvale has been apparent for several years, since the company kicked off its buying spree by spending $250 million to purchase eight NetApp buildings along Orleans Drive, Crossman Ave., Caribbean Drive and Baltic Way in March of 2016. The buildings totaled nearly 600,000 square feet, making the effective per square foot purchase price $420. In July of 2017, in an even larger deal, Google took ownership of 52 parcels acquired by Los Angeles-based CBRE Global Investors on the firm’s behalf. The total value of the properties was $820 million at the time of purchase. In September of 2017, Google spent an additional $245.5 million at 215 Moffett Park Drive and 1190 Borregas Ave., as well as 270 E. Caribbean Dr., previously owned by Rockwood Capital and Walnut Hill Capital LLC, respectively.
How Google’s latest acquisition will fit into its plans for expansion is unknown, although the roughly 5.2-acre site sits just outside Google’s proposed Moffett Park development, which intends to bring 1.042 million square feet of office space to 40.5 acres of land bounded by Carribbean Drive, Mathilda Ave., Bordeau Drive and Borregas Ave. The project will eventually be home to approximately 4,500 Googlers.
For the immediate future, however, Google’s expansion continues at its current Sunnyvale campus. According to the company’s website, the company 452 jobs available across all sectors in Sunnyvale, from facilities to finance to business strategy to design and engineering.