By Meghan Hall
Palo Alto, Calif.-based Sand Hill Property Co. has purchased the former headquarters of Hewlett Packard Enterprise Co. at 3000 Hanover St. in the Stanford Business Park for $380 million, according to a report recently released by Cushman & Wakefield. According to the report, the 546,000 square foot building sold for $696 per square foot. The sale occurred during the fourth quarter of 2018, during a particularly active time for the Bay Area’s investment market.
According to county documents, the sale includes a ground lease, a typical agreement for the Stanford Business Park, where the university maintains ownership of the 36.5 acres of land underneath the buildings. Hewlett Packard vacated the building at the end of 2018 after announcing it was relocated its corporate headquarters to Santa Clara, Calif. Cushman & Wakefield’s David Hiebert and Steve Bouret are now in charge of leasing the building.
Located at the corner of Hanover St. and Page Mill Rd., the property is comprised of four levels, ranging in size from 91,019 square feet to 200,519 square feet. Amenities include open patio areas for dining and meetings, an executive brief center, a kitchen and café, conference rooms and a media studio. Cushman and Wakefield’s site lists that the rental rate for the property is $87 per square foot per year, and that the property was available for lease beginning on February 1, 2019.
The transaction occurred at the end of a busy year for the San Francisco Bay Area; Cushman and Wakefield reported that the local investment market finished out the year with over $7.2 billion in total sales, far above the usual $5.9 billion three-year quarterly average. The office sector accounted for just over half of total investment activity during the fourth quarter, with more than $3.7 billion in volume. Silicon Valley, where the Stanford Business Park is located, retained the top spot in the Bay Area investment market. The strength of the market will continue into 2019, said Cushman and Wakefield, thanks to strong interest from both domestic and international investors.