Google Purchases Three Buildings in Mountain View for $250MM, Leases Four in San Jose

Google, John Arrillaga, Richard Peery, Brokaw Road Office Development, Mountain View, San Jose, Diridon Station, Chesapeake Commons, Sunnyvale, Kilroy Realty, The Carlyle Group
Image Credit: City of San Jose

By Meghan Hall

Google’s seemingly insatiable thirst for space throughout the Bay Area continues, as the tech giant has purchased three older office buildings in Mountain View for $250 million and leased four more in North San Jose, according to industry reporting. The deal between Google and well-known Bay Area developers John Arrillaga and Richard Peery closed Tuesday.

Based on previous industry reporting, Google has hoped to buy three Mountain View properties located at 900 Alta Ave., 1053 Joaquin Rd. and 1489 Charleston Rd., for some time. Google paid $138.6 million for the 92,000 square foot Alta Ave. property and $111.6 million for 1053 Joaquin and 1489 Charleston, which are each 61,000 square feet and 14,000 square feet, respectively.

According to The Mercury News, Arrillaga and Peery had been reluctant to sell its Mountain View properties until Google agreed to lease a portion of its new Brokaw Road Office Development in North San Jose, which is entitled for up to two million square feet of office space. The four buildings that Google has agreed to lease would total 729,000 square feet and could accommodate up to 4,900 employees. Google could begin occupying the four buildings in 2021.

Currently, only one 116,800 square foot building has been delivered for the 30-acre property, but Peery and Arrillaga have requested permits to construct three more buildings on a 16.75-acre portion of the site, according to public documents. The three buildings would total 611,535 square feet. Two of the buildings would each reach eight stories in height and would be about 242,320 square feet a piece. The third building would be smaller, standing four stories tall and include 126,895 square feet. Should Google decide to occupy the entire two million square foot development, it could house as many as 10,000 employees.

Google’s expansion beyond its hometown of Mountain View has been particularly pervasive over the past couple of years; in November of 2018 the company acquired Sunnyvale’s Chesapeake Commons for $160.3 million from Kilroy Realty and purchased two additional office buildings at 4300 and 4400 N. First St. in North San Jose from The Carlyle Group for $154.5 million, all cash. Currently, the City of San Jose is also working with Google through its $110 million proposal to redevelop land around Diridon Station, which could bring 20,000 jobs to San Jose.

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