Menlo Park sites leased to Facebook get half-billion investment of 49%
Buyer strikes second Silicon Valley offices deal since March
MENLO PARK >> A big investor has bought a stake in a large office campus in Menlo Park that’s leased to Facebook in a deal worth well over a half-billion dollars, according to federal and local public documents.
The deal, valued at about $540 million, involved the three buildings in the under-construction Menlo Gateway office campus in Menlo Park, the public records show.
An affiliate of Canadabased Brookfield Asset Management, a big real estate investment firm, bought a 49% interest in the tech campus, according to a public property document filed on Nov. 30 with the San Mateo County Recorder’s Office.
The seller of the stake was Alexandria Real Estate Equities, a Dec. 1 filing by Alexandria with the Securities and Exchange Commission shows.
The Menlo Park office complex totals 773,000 square feet, the Alexandria SEC filing states.
With the recent transaction, Bohannon Office Investors retains a 51% interest in the three-building campus. All three of the buildings are eight stories high.
Facebook had previously struck a deal to rent the entire tech campus, which has addresses of 100 Independence Drive, 101 Constitution Drive and 155 Constitution Drive.
The building on Independence Drive is fully completed and the two buildings on Constitution Drive are under construction, according to a post on the Bohannon Cos. website.
The transaction represents the second major purchase of Silicon Valley office buildings valued at well over a half-billion dollars by an affiliate controlled by Brookfield Asset Management.
In March 2021, Brookfield paid $630 million for two big Mountain View office buildings leased to Facebook, a building that includes the Showplace ICON Mountain View movie complex with 10 screens, and a parking structure, Santa Clara County public records show.
The Brookfield deals, along with numerous other property purchases, show that veteran investors hunger for choice sites in Silicon Valley.
Among the high-profile deals besides the Brookfield purchases:
• In July 2021, HQ @ First, an office complex on Holger Way in north San Jose, was bought by an affiliate of investment firm KKR for $535 million.
• In December 2021, three buildings that are part of the Coleman Highline complex in north San Jose, was bought by London-based AGC Equity Partners for $780 million.