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November 07, 2018  

Alphabet Buying Big Silicon Valley Campus

Alphabet is the buyer in the pending $1 billion trade of Shoreline Technology Center, an 800,000-square-foot office/R&D campus in Mountain View, Calif.

The owner, HCP of Irving, Calif., announced last week it had an agreement to sell the 12-building property. The REIT didn’t disclose the buyer, but market pros identified it as Alphabet, whose Google unit leases 92% of the complex. HCP has owned Shoreline Technology Center since 2007.

The $1,250/sf price tag translates to a capitalization rate of just 3.5%, a reflection of the strong demand in booming Silicon Valley. It would be the largest sale of a single office property in that market’s history — and one of the biggest such trades nationally this year. Alphabet was also the buyer in the year’s largest trade to date. In March, it paid Atlanta-based Jamestown $2.4 billion, or $1,998/sf, for the 1.2 million-sf Chelsea Market office/retail property in Manhattan.