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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.
Nothing unusual. Google is on its way to drive out all small companies and local businesses in the area killing diversity on North Shoreline. Soon they will buy the Cinema too and drive all local restaurants, which are already impacted by Free meals at Google, into bankruptcy.
I know that progress is a good thing but not at warp speed. What is sad, that Mountain View is like Pao Alto where it is truly becoming the “Have’s” and “Have-Not’s.” In Mountain View, if you worked in retail, restaurants, admin/clerical work, you could pay rent and live here. Now all these enormous high end 6-8 story complexes are being built that only wealthy payrolls can afford them. I was born and raised in Mountain View with three daughters to raise alone, and I was able to rent, to have food on the table. I did not live extravagantly, but daughters never went without. I could NEVER do that now. Soon, there will be no one to work restaurants or retail because they can’t afford to live here. Thanks Google.
Do you think housing would be more affordable without those 6-8 story complexes? If so, how much housing should we destroy in order to bring down prices enough?
While this may help my home’s property values I cannot express how sad this new makes me. I don’t want Google taking over my home town.
Google makes another smart move which will not only benefit the city of Mountain View but also further embed the town in the city.
This will only drive up housing costs, as all these projects meant to ‘make housing more affordable’ have over the last 20 years in Silicon Valley. If the City will take dramatic steps, like denying any building permit for any property that is not bound for minimum 50% low-income housing, the city will become 100% unlivable for those not making tech money. It’s already 90% of the way there.
If you want housing projects at 50%+ affordable, what subsidies are you willing to provide them? Higher taxes? Any higher than the current BMR rate, according to city staff, will lead to fewer houses being produced. Which do you prefer, 20 houses at 50% affordable or 100 houses at 15% affordable?
Great- now you’ve sold them the land!!
Make them take care of the traffic next. Otherwise the traffic will just become x1000 times as worse as it is now!
I don’t really understand all the uproar over this. Google ALREADY occupied the buildings for several years, they simply closed on the purchase.
@Mary Kay Google already owns all the small businesses in that area and acts as a landlord, including the cinema. Google had been renting the North Bayshore office park and now they purchased it. Mountain View is growing and changing, I for one am looking forward to it.
Some haters are really triggered when they read that Google did something. So in this case, there was a decades old business park that has been rented to Google for years. When the owner’s name on the land changed to Google, suddenly, UPROAR!
It’s quite silly. You need to pick the time you get mad at Google, otherwise you look like you’re not paying attention, just overreacting with a message of “Google is always bad. It’s all Google’s fault”
Wow that’s pretty amazing — $19M / ac. And Google is also developing in SJ around the main rail station.
Another 10+ million property tax per year on top of this year’s $100 million surplus. Hope the City Govt doesn’t blow it all but rather invests in long-term infrastructure.