Prologis has bought a 292,00-square-foot office and research park occupied by Siemens in Fremont for $71.3 million.
The San Francisco-based real estate investment trust bought the four-building property at 46859, 46871, 46889 and 46897 Bayside Parkway, the San Jose Mercury News reported. The seller was undisclosed.
The cash deal works out to $244 per square foot.
The property was owned by Mentor Graphics, according to a property database, which was acquired in 2017 by Siemens and renamed Siemens EDA, a unit of Siemens Industry Software.
The campus is now fully occupied by Siemens Industry Software, a subsidiary of the German-based tech firm.
Terms of what appears to be a sale-leaseback agreement between Prologis and Siemens were not disclosed.
The property was assessed early this year for $57.8 million, or 23 percent less than the purchase price, according to the Mercury News.
Prologis, the world’s largest industrial real estate owner, reported an 18 percent drop in revenue to $2.01 billion for the quarter ending in June. That’s down from $2.45 billion in the same period a year ago.
Because of plunging revenue from a growing number of empty warehouses coast to coast, the REIT set its sights on artificial intelligence and data centers for an industrial about-face.
— Dana Bartholomew
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