Tech behemoth Google has made a fresh billion dollar deal for picking up a mega office complex in plush Silicon Valley. We take a closer look.
Tech behemoth Google has made a fresh billion dollar deal for picking up a mega office complex in plush Silicon Valley, according to media reports. Google has spent a whopping $1 billion on a large office park near its headquarters in Mountain View, California, according to the Mercury News. With this purchase, Google has spent over $2.8 billion on properties in Mountain View, Sunnyvale and San Jose over the last two years alone. In this case, the world’s second largest firm by market cap is buying property that it’s already a tenant of. The company is the main tenant of the 12 buildings that comprise the 51.8-acre Shoreline Technology Park.
At a jaw-dropping $1 billion, Google is paying $19 million per acre for the 800,000 square-foot office campus, in what is being seen as one of the company’s largest and most expensive North Bayshore acquisitions to date. Interestingly, Google’s latest deal is the the second-largest property purchase in the United States this year, second only to the $2.4 billion which the company paid for Chelsea Market in Manhattan, according to a report in The Mercury News.
The report further added that the newly acquired site in Mountain View is larger than the the tech giant’s Googleplex headquarters, just a few blocks to the west and also exceeds the size of the parcel across the street where Google is building an iconic “dome” campus that features canopies and tents.
Earlier this month, Google had agreed to pay an additional $110 million for 10.5 acres for a new campus in downtown San Jose, with the possibility of buying about 11 more acres. The city will vote on the plans in early December. The mega deal comes after Chief Financial Officer Ruth Porat said recently that the company favors “owning rather than leasing real estate when we see good opportunities,” according to CNBC.