PSAI Realty Partners just made the priciest office purchase in Mountain View in five years.
The San Francisco-based firm bought the five-building Mountain View Corporate Center from private real estate investor Rockwood Capital for $193 million, the Silicon Valley Business Journal reported. Rockwood listed the property for sale in September.
The transaction for the property at 331 East Evelyn Avenue is the biggest in Mountain View since values began falling in 2021. It’s the first office sale in Mountain View to surpass $150 million in three years, outdoing past deals including DivcoWest’s $108.1 million purchase of 600 Clyde Avenue in 2024.
Mountain View Corporate Center spans 289,000 square feet on a 16-acre site. The office complex is fully leased to tenants like Databricks, Atlassian and Heartflow. Databricks, the largest tenant at the campus with 47,000 square feet, is expected to leave Mountain View Corporate Center, according to the Business Journal. The firm has been in expansion mode across Silicon Valley, most recently leasing an additional three floors of offices in Sunnyvale last month.
Approximately 20 institutional investors, consisting mostly of private equity firms, were interested in buying the offices, sources familiar with the deal told the Business Journal. It appears that investors are confident in the comeback of the Silicon Valley office market after pandemic lows and the influx of artificial intelligence firms setting up shop in the South Bay.
Mountain View has more than 12 million square feet of office space available for rent, according to fourth-quarter data from CBRE cited by the Business Journal.
Tech workers who live in Mountain View might have the hardest time making ends meet, as the city is now the priciest in Silicon Valley for renters. Rents have climbed past pre-pandemic highs, with some new luxury one-bedrooms fetching approximately $5.75 per square foot, up from a previous peak of $5.50 per square foot.— Chris Malone Méndez
Read more
Commercial
New York
Rockwood Capital finds buyer for Midtown office tower
Commercial
San Francisco
East Bay office sale laps SF market at $477 psf
Residential
San Francisco
Which Silicon Valley city is priciest in region for renters?