Peery Arrillaga Buys Facebook-Leased Building in Fremont for $38.5MM

By Meghan Hall

With a new acquisitions in hand, Peery Arrillaga’s—and potentially Facebook’s—dealings in the Ardenwood District of Fremont have expanded. According industry sources, Peery Arrillaga paid Electronics for Imaging $38.5 million at the end of October for 6750 Dumbarton Circle. Currently, Facebook is a tenant of the building.

The buildings totals just under 119,000 square feet, bringing the cost of the deal to about $326 per square foot. Arrillaga purchased the building from EFI after selling it to the company several years ago, as part of a two-building deal that also included the lease of 6700 Dumbarton Circle. Two neighboring buildings, 6800 and 6900 Dumbarton, are also owned by  Peery Arrillaga and are currently leased to Tesla.

Facebook first made the jump to Fremont in 2017, when it was announced that Facebook had taken 190,000 square feet at 6530 Paseo Padre Parkway and 6422 Commerce Drive from the Sobrato Organization. Then, in June of 2018, Facebook nabbed 14 buildings totaling 750,000 square feet from Peery Arrillaga, bringing its Fremont presence to more than one million square feet.

Additionally, however, Facebook could have room to grow: Arrillaga also submitted plans in 2018 to construct four Class A office buildings totaling 802,340 square feet just up the road at 7650 Dumbarton Circle. The buildings would sit on close to 25 acres in the Ardenwood Technology Park. According to City documents dating to July, the site is undeveloped. Two parking garages are also part of the plans. Documents indicate that the office buildings will have articulated facades with a glass curtainwall and vertical metal walls at prominent corners. The uppermost floors will have exterior terraces, as well.

Facebook is also working to update numerous buildings totaling 724,000 square feet on Dumbarton Circle, Kaiser Drive and Campus Drive.

Located at the eastern end of the Dumbarton Bridge, the Ardenwood District is well-known as Fremont’s main—and—growing business hub. Historically, the district has been home to biotech companies such as German pharmaceutical firm Boehringer Ingelheim, although the presence of Tesla and Facebook have brought the tech and auto industries to Fremont’s door. In 2016, the City of Fremont rezoned the district from a low-scale business park to include higher increases in allowable floor ratio for new development.

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