Google's blitz of land-buying is moving ahead full steam. On Monday, the tech giant announced it had purchased the Shoreline Technology Center, a 800,000 square-foot office campus, in one of the company's largest and most expensive North Bayshore acquisitions to date.
Even by the standards of Silicon Valley, the details of this new land deal are jaw-dropping. The 51.8 acre property located on Steirlin Court is reportedly being sold to Google for $1 billion. That equates to more than $19 million per acre, far more than any previous land sale on record in the area.
The tech giant confirmed details of the land deal to the Voice on Monday, Nov. 26. The sale was first reported by the San Jose Mercury News.
The Shoreline Technology Center consists of large swaths of parking lots and low-density offices, which are no higher than two stories. If redeveloped, the site could be built as high as four stories under Mountain View's precise plan for the area.
Google is already occupying much of the Shoreline Technology Center office space under a lease agreement going back more than a decade. The company subleased a portion of the offices to another tenant, Alexza Pharmaceuticals.
Unlike other surrounding streets, the Shoreline Technology Center property is not included in the city of Mountain View's plans to build up to 9,850 housing units in North Bayshore. Those plans for housing development are focused in three planned neighborhoods located further to the south.
Google officials speaking on background said the company has no plans to redevelop the buildings or relocate their employees.
The company might already have its hands full with several other large-scale developments nearby. Just a stone's throw away, Google is nearing completion on two showpiece office projects: one at the Charleston East property, and the other located at Moffett Field on land leased from NASA. Earlier this month, plans were also submitted for a new 800,000-square-foot office project at 2171 Landings Drive as well as a new parking garage for 1,800 vehicles.
Irvine-based real estate firm HCP Inc. sold the property to Google. In an investor report last month, HCP executives highlighted that they had inked a final agreement to sell the Shoreline Technology Center to an undisclosed buyer. The firm is reportedly making about $700 million in profits from the sale.
Google officials were cryptic when asked why it paid so much for the property. A person familiar with the deal would only say that it made sense to move from leasing to owning the land since they were already the majority tenant.