Posted on March 16, 2016
On March 9th, 2016, NetApp and Google entered into an agreement for the Mountain View-based search giant to purchase eight buildings currently owned by NetApp for $250 million. The deal represents yet another attempt for Google to secure real property for future growth in Silicon Valley.
According to an 8-K SEC document filed by NetApp, the sale is expected to close prior to April 12, 2016, and in no circumstance, later than April 22, 2016. The eight buildings total nearly 600,000 square feet, making the effective per square foot purchase price at $420.
The eight buildings are:
- an approximately 46,170 square foot building located at 1299 Orleans Drive;
- an approximately 42,624 square foot building located at 1277 Orleans Drive;
- an approximately 95,464 square foot building located at 1260 Crossman Avenue;
- an approximately 125,648 square foot building located at 1240 Crossman Avenue;
- an approximately 110,160 square foot building located at 549 Baltic Way;
- an approximately 88,320 square foot building located at 641 Baltic Way;
- an approximately 43,372 square foot building located at 611 Baltic Way; and
- an approximately 43,372 square foot building located at 633 Caribbean Drive
Google’s appetite for real estate across the entire region has been seemingly insatiable. Last week, the company announced that its life science subsidiary, Verily, would be taking over a 407,000 square foot lease in in South San Francisco from Alexandria Real Estate Equities. The space was previously occupied by Amgen.
In January, Google also made a relatively small purchase of a building in Palo Alto, which was the former headquarters of Essex Property Trust located at 925 E. Meadow Dr. The price the company paid was $18 million, or just over $1,034 per square foot for the 17,404 square foot building. The purchase itself was significant because it capped a 10-building purchasing spree the company had in the same development.
These were just the latest transactions that followed a very active 2015 for the search giant, and quite possibly an indication of the firm’s intentions for 2016, as well.