$3.5 Billion of Silicon Valley Property Sold

Real estate investment company, Hudson Pacific Properties, is poised to fork over $3.5 billion for 26 office complexes in Santa Clara and San Mateo counties in what will be one of the largest property transactions of 2014.

The aggregate square footage of the complexes totals 8.2 million, or roughly the size of ten regional shopping centers. Included among the high profile office buildings are The Concourse located by the San Jose Airport, Techmart Commerce Center on Great America Parkway in Santa Clara, and a number of complexes in Palo Alto, Redwood City, and buildings in the Sand Hill district of Menlo Park.

The Silicon Valley’s demographic trends and robust employment coupled with its combination of well-established and growing businesses make it one of the most appealing areas for establishing office space. With all signs pointing to continued growth, the Silicon Valley will likely see continued interest in this market well into 2015 as high tech companies such as Google, Apple, and other fast-growing corporations seek buildings to house expanding needs.

This 26 complex portfolio is currently owned by Equity Office Properties (EOP), holder of forty-five million square feet of principal office space throughout the United States. In November of 2013, the company sold over 3 million square feet of prime Silicon Valley office space for $85 million. In September 2014, the company placed the iconic Campbell Pruneyard Shopping Center on the market. The center includes retail and office space as well as a DoubleTree by Hilton hotel.

Despite the bright economic outlook of the area that is attracting other investors, Equity Office continues to cash out because of the company’s five to seven year hold strategy. The increased demand is definitely enabling EOP to sell their property for top dollar. At their peak, Equity held over ten million square feet of Silicon Valley office space.