Developer makes $600 million deal

Sand Hill Road campus purchased by DivcoWest in famed hub of venture capital

MENLO PARK >> Two big Silicon Valley office parks on legendary Sand Hill Road in Menlo Park have been bought by veteran developer DivcoWest for more than $600 million, in what appears to be the Bay Area’s largest property deal in the still-young 2020.

DivcoWest, which successfully teamed up with commercial real estate firm Newmark Knight Frank to stage a revival and successful leasing venture for Riverpark Towers in downtown

San Jose, once again aims to launch a turnaround for the venerable office campuses it has just bought in Menlo Park.

In two transactions, DivcoWest, acting through separate affiliates, has bought an office campus at 3000 Sand Hill Road and another campus with addresses that range from 2700 through 2770 Sand Hill Road, according to public property documents that were filed on Jan. 16 with the San Mateo County Recorder’s Office.

“Properties on Sand Hill Road are highly coveted and rarely trade,” said Sam Hamilton,

co-head of acquisitions with DivcoWest.

In 2011, DivcoWest bought 2400-2498 Sand Hill Road in Menlo Park, an office campus known as Quadrus. The latest transaction dramatically widens the developer’s holdings in the area, which is deemed to be the world’s most important hub for venture capital companies.

“The addition of these landmark campuses provides us with significant scale in one of the most attractive innovation-centric submarkets in the world,” Hamilton said.

Eastdil Secured represented the seller, Ford Land Co., the long-time owner of the two campuses. Eastdil also procured financing for the transaction. DivcoWest

has engaged a Newmark Knight Frank leasing team of Christian Prelle, Brad Van Linge, Clay Jones, and Sarah Bohannon to market the Sand Hill campuses.

With the most recent purchases, DivcoWest owns 21 buildings on nearly 50 acres, which equates to 44 percent of the Sand Hill Road market.

DivcoWest intends to soon introduce improved offerings in health, wellness, and community at the just-bought office parks, along with other high-end amenities that would appeal to people working on Sand Hill Road.

All told, the DivcoWest affiliates paid $610 million for the two campuses, which together

total 320,000 square feet, two deeds filed with San Mateo County show. That places the price at a jaw-dropping

$1,906 a square foot.

The 3000 Sand Hill property was bought by DivcoWest for $366.9 million, while the 2700-2770 Sand Hill complex was bought for $243.1 million, according to the county property documents.

“Sand Hill’s appeal continues to this day because it provides a dynamic corporate location surrounded by extensive natural surroundings,” said Gregg Walker, head of business development with DivcoWest.

DivcoWest executives believe

modern tech, venture, and innovation companies located in the Bay Area will increasingly scout for locations that support the health and well-being of employees.

“More and more, we hear from tenants that with today’s

digital distractions, it’s not enough to have an office, you have to provide your employees with an environment and space to focus, reflect and innovate,” Walker said.