Jul 16, 2013, 8:51am PDT Updated: Jul 16, 2013, 1:01pm PDT

Google pushes into Palo Alto with big property purchase (updated)

Google is going into Palo Alto with a big property pickup.

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Nathan Donato-Weinstein: Real Estate Reporter- Silicon Valley Business Journal; Email | Twitter

Google Inc. has bought almost 15 acres in Palo Alto, picking up a portfolio of seven older industrial properties and a small parcel of bare land off East Meadow Circle in what could be a redevelopment play.
Public records show Mountain View-based Google acquired the properties this week from Menlo Park-based California Pacific Commercial Corp., a longtime Valley real estate firm.
The deal marks a return of sorts for Google, which started in a Menlo Park garage but took its first office at 165 University Ave. in Palo Alto in February 1999, according to its company history. Google started moving out to Mountain View later that year.
City officials today said they did not know Google's plans for the property but sounded a positive note at the news.
"It's a very exciting idea," Thomas Fehrenbach, economic development director for Palo Alto, told me this morning. "We're very much looking forward to working with Google on what exactly their plans would be. We're welcoming them back to Palo Alto."
The properties are all on East Meadow Circle. Their addresses are 1015, 1020, 1025, 1036, 1040, 1085, and 1086 East Meadow Circle. Those properties, plus a one-acre chunk of bare land on nearby Fabian Way, total about 14.75 acres. (See the end of this article for specifics on the properties' sizes.)
No price was given in the public records that I reviewed. The Registry, which first reported the sale Monday but did not initially disclose the buyer, said the properties traded for $60 million to $70 million.
A source with knowledge of the deal told me the sale was closer to the higher end of that range. Interest in the offering, this person said, was strong. I'm told parties taking a run at it included owner-users and developers.

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Nathan Donato-Weinstein covers commercial real estate and transportation for the Silicon Valley Business Journal.

Industries:

Commercial Real Estate

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