Palo Alto Campus Sells to Google

East Meadow Circle Palo Alto The Registry real estate

By Jon Peterson

Menlo Park-based California Pacific Commercial Corp. has sold a 200,000-square-foot portfolio of manufacturing and office properties on East Meadow Circle in Palo Alto to Google Inc. The sales price was $60 million to $70 million for the cluster of buildings on the west side of U.S. 101 just north of San Antonio Road, according to a source with direct knowledge. The deal was completed in an all-cash transaction.

Google declined to provide additional information about its intended use for the property through a spokeswoman.

There are a total of seven buildings in the portfolio on approximately 15 acres. At least some of the properties were first developed in the late 1950s. The portfolio currently is fully occupied.

The seller traded the properties through its listing agent, Jones Lang LaSalle and Managing Director Erik Doyle and Executive Vice President Will Connors, both of whom work in the JLL Palo Alto office. California Pacific did not return phone calls seeking comment. Jones Lang declined comment.

Aaron Aknin, acting planning director for the city of Palo Alto, said the city is considering a near doubling of the allowable development the property can support going from a current floor-area ratio of 32 percent to a range as high as 60 percent. The floor-area ratio expresses the amount of building allowed for every square foot of land. “This still has to be approved and go through an environmental review,” he said. The discussion is expected to take place over the next year. “This is all part of the city’s comprehensive plan update.”

The new owner is expected to take occupancy in the buildings as leases with some of the current tenants expire. Some of the tenants on East Meadow Circle now include Classic Communities at 1068 East Meadow Circle and Anacor Pharmaceuticals on 1020 East Meadow Circle. Neither company returned calls seeking comment.

Map courtesy of Google Maps

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