IHealth Labs has purchased a 40,900-square-foot office building in Sunnyvale for $23 million, or $2 million less than its assessed value.
The Sunnyvale-based digital health firm bought the single-story offices at 880 West Maude Avenue, the San Jose Mercury News reported. The seller was LinkedIn, based in Sunnyvale.
The career-oriented social media platform bought the building at Maude and North Mary avenues in 2015 for $22.4 million.
Together, the purchases indicate a softening office market in Silicon Valley. The property’s value has risen 2.7 percent in just over seven years, with an average yearly increase of 0.4 percent, according to the Mercury News.
That’s far below the typical annual gain in the S&P 500 of around 7 percent.
The building, built in 1975, sits on 2.6 acres. Its assessed value in July 2022 was $25 million, according to the county.
iHealth, founded in 2010, launched the world’s first Bluetooth-connected blood pressure monitor that worked with iOS devices. During the pandemic, it became a leading maker of thermometers and at-home test kits.
Numerous tech companies have cut jobs or shed offices across the Bay Area. But while most of Silicon Valley’s office market has gone stagnant this year, Sunnyvale landlords have signed leases from tech companies looking to consolidate in one location.
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— Dana Bartholomew