Morgan Stanley acquired an office building anchored by medical offices in Menlo Park, according to Steven Golubchik from Newmark.
The New York-based investment firm purchased the building from 321 Middlefield LLC, an entity linked to the recently deceased James Moore Pollock from Portola Valley, for $68 million or $1,405 per square foot.
The building is located at 321 Middlefield Road and contains 48,397 square feet. The Menlo Medical Clinic, as the site is named, is home to more than 50 physicians covering 20 disciplines. The medical office sits on 3.1 acres and is three miles from the Stanford Medical Hospital.
This acquisition on Jan. 5 ranks among the largest recent office deals in Silicon Valley. Billionaire couple Stewart and Lynda Resnick, whose business divisions include the POM Wonderful pomegranate juice brand and Fiji Water, acquired an office building in San Jose in an $85 million deal in November. In Menlo Park, San Francisco-based Ellis Partners acquired a Class A office building for $65 million, or $1,508 per square foot. The Wonderful Company paid $54 million, or nearly $560 a square foot, to purchase the 96,500-square-foot property at 350 Holger Way on the city’s north side, according to public records. The deal also included Wonderful’s assumption of a $30 million mortgage from Wells Fargo.
The largest transaction last quarter, according to a report by CBRE, was Metzler Enterprises paying $222 million, or $1,138 per square foot, for a 195,000-square-foot building in Sunnyvale.
“The Silicon Valley office market had a slow finish to end 2022,” the report said. “The first half of 2022 posted pre-pandemic levels of positive net absorption; however, the third and fourth quarters contracted. The current state of the economy impacted headcount decisions, and layoffs continued.”
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