PALO ALTO — A new Palo Alto office building that’s occupied by Visa has been bought in an all-cash deal that indicates realty investors hunger for Silicon Valley commercial properties.
The building, located in Palo Alto’s California Avenue business district, was bought by investors for $138 million in cash, according to Santa Clara County property records. The buyer was SVF Sherman Palo Alto, which, public records show, is associated with a Carlsbad-based entity called Ryan LLC.
The purchase of the building, located at 385 Sherman Ave., appears to be the most expensive commercial real estate deal in Santa Clara County during the still-young year of 2018, based on the total dollar amount. The acquisition of the 64,000-square-foot building was completed on Thursday, Jan. 18.
The buyers paid an eye-popping $2,165 a square foot for the building, which was completed in 2016.
The only occupant of the building is a Visa research and development unit dedicated to digital commerce products and services. Visa announced in July 2016 that it would be moving into the building.
“A combination of office and collaboration spaces for approximately 300 Visa employees focused on technology research, business intelligence, data security and merchant solutions,” was how Visa at the time described the activities that were planned for the building.
San Francisco-based Visa said, at the time it announced the new Palo Alto office, that the site fit into a widening strategy for the financial services and electronic commerce behemoth.
“We continue to expand our research and development capabilities globally and are investing in facilities that enable our teams to collaborate in the creation of digital commerce solutions,” Rajat Taneja, Visa’s executive vice president of technology, said.
Visa’s three-story building is a short distance from an array of dining and drinking establishments, including The Counter hamburger restaurant, Pastis French restaurant, Joanie’s Cafe, Cafe Pro Bono, Palo …read more
Source:: The Mercury News – Business