YouTube Records $215 Million Office Campus Purchase
Video-Sharing Website Acquires Bayhill Office Center in San Bruno from Hudson Pacific Properties
January 26, 2016
YouTube purchased a San Bruno, CA, office park from Hudson Pacific Properties, Inc. in an off-market, all-cash transaction for $215 million, or approximately $388 per square foot.
The three-building, 554,328-square-foot Bayhill Office Center is located in the San Bruno/Millbrae in the area of Bayhill Dr. and El Camino Real, and will serve as an expanded headquarters for the fast-growing Google division, whose current headquarters adjoins the Bayhill site.
Hudson Pacific Properties owned the property for less than a year, buying it in April 2015 from Blackstone's Equity Office as part of a portfolio acquisition. The three buildings are nearly fully leased, according to CoStar information, with some available space on the second and third floors at 1001 and at 1111 Bayhill Dr. It was not disclosed if or when YouTube planned to expand into the purchased buildings. CBRE currently has the listing.
Victor Coleman, Chairman and CEO of Hudson Pacific Properties, said the sale highlights the continued strong demand from the world’s leading technology companies for high quality office space along the San Francisco peninsula, adding his company sold the office complex at a premium to the original purchase price allocated to it as part of the Blackstone portfolio acquisition.
For more information regarding this transaction, please refer to Costar Comp #3493266.