Google Spends Another $79.6MM on Two Properties in San Jose and Mountain View

Google, Silicon Valley, Silicon Valley Business Journal, San Jose, Mountain View, Trammell Crow, Auzerias Avenue, Los Gatos Creek, Orchard Supply Hardware, National Retail Properties, Sierra Greens, Googleplex

By Vladimir Bosanac

Google’s insatiable demand for real estate in Silicon Valley continues unabated, as the company continues to gobble up available real estate next to properties that it already owns. According to a report by the Silicon Valley Business Journal, the technology giant spent $79.55 million to acquire two such assets in San Jose and Mountain View.

In San Jose, where Google already is pushing to develop over six million square feet of office properties with its development partner, Trammell Crow, the company spent $39.55 million to buy a roughly 5.6 acre site on Auzerias Avenue that roughly intersects with Royal Avenue, just north of I 280 and along the Los Gatos Creek. The site is home to a 48,500-square-foot Orchard Supply Hardware store and 365 Royal Avenue Parking lot. It is generally an industrial area with numerous industrial buildings spread across the neighborhood.

The site is just southwest from Downtown San Jose, but just two blocks from San Jose’s Diridon station, which is in close proximity to the area where Trammell Crow and Google and planning their expansive development. The seller was Orlando, Fla.-based National Retail Properties.

It is difficult to say what the company plans to do with this property at this time, but the nature of the industrial buildings could mean they may be used for a more research and development types of uses. Of course, the properties may end up finding alternate uses, but these plans are not known at the moment.

At the same time, Google spent an additional $40 million to acquire 1555 Plymouth St. in Mountain View, a narrow plot of land that has a roughly 215,000 square foot building on it, which is currently leased to Kirkland, Wash.-based Wave, a commercial and residential cable and internet provider.

The seller of this property was Sierra Greens, an entity associated with the Boyce, Rahn and Bertolotti families.

This is location is just north of US Highway 101, the Bayshore Freeway, and it is next to Google’s sprawling campus, Googleplex. This purchase seems obvious because it is in the middle of the various developments that were under consideration and approved under Mountain View’s North Bayshore Area Plan in 2015. Broadreach Capital Partners has a property to the west of the lot, and in its land swap with LinkedIn, Google now owns with SyWest the Century Cinema development plans to the east of the property.

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