Hudson Pacific Properties has announced that the Bayhill Office Center in San Bruno, California was recently bought by the online video streaming company YouTube for $215 million, before certain credits, proration and closing costs.
"Our sale of Bayhill Office Center highlights continued strong demand from the world's leading technology companies for high-quality office space along the Peninsula," said Victor Coleman, Chairman and CEO of Hudson Pacific Properties. "The asset was non-core to our portfolio, and we sold it at a premium to our original purchase price allocation as part of the Blackstone portfolio acquisition."
According to the press release of Hudson Pacific Properties in Business Wire, the 554,328-square-foot Class A office campus was acquired by Hudson Pacific Properties as part of the San Francisco Peninsula and Silicon Valley portfolio, purchased in April 2015 from Blackstone.
Silicon Valley Business Journal reported that YouTube's existing headquarter building that includes the Google-owned 900 and 1000, and 901 Cherry, which Google leases from the Gap, is adjacent to the newly purchased campus.
Hudson Pacific Properties is a vertically integrated real estate company focused on acquiring, repositioning, developing and operating high-quality office and state-of-the-art media and entertainment properties in select West Coast markets. Hudson Pacific has strategically assembled a portfolio totaling approximately 16.8 million square feet, including land for development, in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California and the Pacific Northwest. The company is a leading provider of design-forward, next-generation workspaces for a variety of tenants, with a focus on Fortune 500 and industry-leading growth companies, as well as many in the technology, media and entertainment sectors.
YouTube is a video-sharing website headquartered in San Bruno, California, United States, that was created by three previous employees of PayPal, Chad Hurley, Steve Chen and Jawed Karim, in February 2005. YouTube was bought by Google in November 2006 for US$1.65 billion.
The sale was an all-cash, off-market transaction.
