Just over a year of ownership seemed enough for Blackstone to hold on to its $136,770,000 investment in 601 California Avenue in Palo Alto. The company sold earlier this month the 114,000 square foot building to Morgan Stanley for $145.1 million, or just over $1,272 per square foot, according to public records.
601 California Avenue in Palo Alto is located at the Stanford Research Park, and it is a property that sits on a ground lease owned by Stanford University. Today, the property is home to the venerable Silicon Valley law firm Wilson Sonsini Goodrich & Rosati.
Michel Seifer, Will Connors and Daniel Renz of JLL’s Capital Markets team in San Francisco represented the seller in the transaction.
As The Registry first reported, the sale to Blackstone came through a disposition that Alecta, a Swedish occupational pension fund manager, made in late 2016, when it made the decision to sell all of its directly owned real estate assets in the United States and United Kingdom. This portfolio included six properties in the San Francisco Bay Area, three of which were purchased in December of 2016 by the Blackstone Group for $291,180,000. 601 California was one of them.
These assets were part of 22-property portfolio in the United States and 26 properties in the United Kingdom that the pension manager sold.
Stanford Research Park is situated squarely in the heart of Silicon Valley’s business community, surrounded by popular social spots, and a rich arts and culture scene, according to its web site. Pioneering companies like Tesla and Nest were founded there, and powerhouse Fortune 500 companies like Hewlett-Packard and Ford Motor Company call it home and add to the diversity of Silicon Valley’s economic engine.