The power of Google: Tech giant-leased office building sells for $191M

In January, Google won a bidding war with WeWork and leased a 150,000-square-foot office building near the tech giant’s Mountain View headquarters.

Now, Preylock Real Estate Holdings acquired the office building at 620 National Avenue for $190 million, according to the Mercury News. The deal works out to $1,260 per square foot.
Google’s lease runs through 2029, and the property is a few miles from its Googleplex. It also has offices a short walk from Century City-based Preylock’s new building.

Properties leased by top tech firms — especially long-term deals — command high prices, and are a top target for institutional investors. In Miami, a logistics firm this week sold an Amazon-leased, 117,000-square-foot warehouse to JPMorgan Asset Management.

For the Preylock deal, the seller is Delaware-based National Avenue Partners LLC, led by developer Victor R. Fracaro, records show. The firm began assembling parcels for the office building in 2012 and in 2015. It secured $71.8 million in construction financing from Regency Capital Partners and TDA investment Group for the spec office development.

Preylock owns four other properties in the Silicon Valley region and two office buildings in Southern California, including a 158,000-square-foot office in Torrance it bought from Sares-Regis last July for $26.2 million. [The Mercury News] — Dennis Lynch