Sand Hill pays $130M for former Facebook home
- Nathan Donato-Weinstein
- Real Estate Reporter- Silicon Valley Business Journal
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Sand Hill Property Co. just updated its status in
Palo Alto, picking up the former home of Facebook.
The Redwood City-based developer and property owner paid $130 million to
acquire 1050 Page Mill Road, according to county records. The
265,000-square-foot office and warehouse complex is notable both for its prime
location in the storied Stanford Research Park and its most recent tenant,
Facebook Inc.An affiliate of Sand Hill Property Co. acquired the ground lease and the buildings from Chicago-based JMB Realty Corp., according to people familiar with the transaction. The project was leased on a long-term basis to medical equipment maker Beckman Coulter, which subleased the complex to Facebook in 2009. (The social media juggernaut later outgrew the space and decamped to a new campus in Menlo Park.)
Sand Hill's well-known founder,
Peter Pau, declined to comment
on the deal, and representatives of JMB could not be reached on Monday.
It's unclear what Sand Hill has in store for the acquisition, which traded
for roughly $490 a square foot. The property is fairly unique in that it
contains about 175,000 square feet of office/R&D space and another 86,000
square feet of warehouse/manufacturing. Sitting on 13.5 acres in the tech
industry's ground zero, it could be ripe for a redevelopment or value-add play,
some observers told me. That is a strategy that is in the wheelhouse of Sand
Hill, which is currently building Main Street Cupertino, a mixed-use village in
the West Valley city, as well as a medical office building for Palo Alto Medical
Foundation in Los Gatos and a campus expansion for Netflix Inc. Nathan Donato-Weinstein covers commercial real estate and transportation for the Silicon Valley Business Journal.
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