Blackstone Sells Silicon Valley Asset for $123M
The campus is next to the chipmaker’s headquarters.
NVIDIA expanded its presence in Silicon Valley with the $123 million acquisition of Santa Clara Commerce Park, a 251,000-square-foot flex office campus adjacent to the company’s headquarters, according to The Registry. Blackstone’s Link Logistics previously owned the property, CommercialEdge shows.
The campus is subject to a $2.7 billion CMBS loan encumbering 138 properties, according to the same source. Citibank originated the note in 2022 and since then, 28 properties have been released, resulting in principal paydowns totaling $552 million as of July 2024. The note is due to mature this August.
Located at 2300-2398 Walsh Ave., the campus is roughly 7 miles from San Jose’s central business district. Thoroughfares such as U.S. Route 101 and Interstate 280 run within 4 miles. The San Jose Mineta International Airport is less than 6 miles east.
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Comprised of 10 buildings, the property debuted between 1959 and 1973. It features office, research and development, as well as warehouse space, in addition to amenities such as an on-site deli and gym.
NVIDIA’s AI-fueled expansion
The artificial intelligence chipmaker is in full expansion mode. Just last month, NVIDIA laid out plans to manufacture its artificial intelligence supercomputers entirely in the U.S. Through several partnerships, the company expects to produce half a trillion dollars of AI infrastructure across the nation within the next four years.
Earlier this year, NVIDIA purchased Sobrato Organization’s 500,000-square-foot campus, which it had occupied since 2010. That property is also close to its headquarters, a 550,000-square-foot asset that the chipmaker purchased for $374 million from Preylock Holdings last year.
Silicon Valley keeps attracting office investment
The Bay Area led the Western Markets in terms of sales with an office investment volume clocking in at $727 million during the first quarter, according to a CommercialEdge report. Assets traded on average for $200 per square foot, just shy of Los Angeles’ average of $286 per square foot, but significantly below San Diego ($665 per square foot).
Silicon Valley’s office investment retained momentum going into April. Last month, LinkedIn acquired a 120,000-square-foot research and development asset in Sunnyvale, Calif., for $75 million. Synopsys previously owned the property.
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