By Meghan Hall
Professional networking firm LinkedIn has shored up its commitment to Sunnyvale, buying the site of its current headquarters for a healthy price tag. In a deal that closed this week, LinkedIn purchased its W. Maude Ave. campus for $323 million, or about $1,122 per square foot. The firm has been leasing the buildings and acquired them from an entity associated with Deutsche Bank.
The Silicon Valley Business Journal was the first to report on the transaction.
LinkedIn acquired three assets at 950, 1000 and 1020 W. Maude Ave. Combined, the buildings total 287,644 square feet, according to data from CommercialCafe. The Class A, single-tenant buildings were originally constructed in 1999 and sit on 10.04 acres of land.
LinkedIn took over leasing the buildings in 2016 as part of a larger landholdings swap coordinated with Google. LinkedIn also acquired 28 acres in Mountain View, while Google received 10 acres in the North Bayshore neighborhood of Mountain View. There, LinkedIn previously had plans to redevelop the property. Google also took over LinkedIn lease of the Britannia Shoreline Technology Park–also in Mountain View–at the time of the deal.
Throughout the first half of the year, the Silicon Valley office market has seen few major transactions, although LinkedIn’s latest acquisition is likely to bolster investor sentiment. By the end of the first quarter, the largest deal was Thor Equities’ acquisition of 350 Holger Way in North San Jose for $50.5 million, or about $518 per square foot, according to data released by Newmark.
However, a number of notable deals have closed recently throughout Silicon Valley include the Florida State Board of Administration’s $177 million purchase of an under-construction life sciences development in San Carlos, as well as Peninsula Land Capital’s acquisition of multiple Silicon Valley assets for $165 million.
The acquisitions show that the Silicon Valley office market is seeing signs of recovery and is likely to improve as confidence in commercial real estate and return to work continue to rise.