Applied Materials has paid $9 million for an industrial building in Sunnyvale as part of a nearly $250 million property buying binge across Silicon Valley.
The Santa Clara-based tech firm most recently bought the 18,100-square-foot building at 230 Commercial St. in an all-cash deal, the San Jose Mercury News reported. The building sits on 2.1 acres, and could easily be redeveloped into a building as large as 64,000 square feet.
The maker of equipment to produce semiconductors and displays has also turned to sublease deals to expand its footprint around its Peninsula base.
Applied Materials just subleased 246,000 square feet of office space in Santa Clara in a deal that strengthens its presence in its home city while offering some good news for its struggling office market.
Applied agreed to sublease an entire six-story office building at 3333 Scott Blvd. from a unit of Hewlett Packard Enterprise.
The sublease adds to the dozen buildings in Santa Clara and the nine in neighboring Sunnyvale that Applied owns or rents — a collection of properties that spans three campuses. https://www.appliedmaterials.com/files/santa-clara-map-051121.pdf
Applied Materials has now spent at least $248.7 million buying an assortment of properties in Sunnyvale, according to the Mercury News.
It acquired three Sunnyvale research buildings totaling about 200,000 square feet for $81 million in May 2021 before leasing a 210,000-square-foot industrial facility in Fremont in the East Bay a month later.
The Class A building on Scott Boulevard is next door to one it’s subleasing from Palo Alto Networks, another local tech company, and within walking distance of its 673,500-square-foot “Bowers” campus, one of Silicon Valley’s larger office complexes.
The Applied Materials’ property acquisitions in Sunnyvale began in August 2018 when it paid $41.4 million for a building at 928 E. Arques Ave.
The largest single deal in Sunnyvale came the following year when the company paid $100.9 million for a tech campus of large office buildings leased to Apple with addresses ranging from 1050 through 1090 E. Arques Ave.
Multiple tech companies have tried to assemble properties in Sunnyvale where they can expand within the South Bay tech hub, the newspaper reported
LinkedIn, Intuitive Surgical, Google, Fortinet, Apple and Amazon, along with Applied Materials, have been grabbing Sunnyvale sites for expansion. Amazon has primarily rented offices. The other companies have also bought properties.
[San Jose Mercury News] – Dana Bartholomew
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