Menlo Park, California - Our Net Lease Properties news today is from an excellent area in California, the town of Menlo Park. This commercial real estate news involves some big names in Silicon Valley and beyond. Facebook will be moving its corporate headquarters to the old Sun Microsystems campus in Menlo Park.
Facebook is to acquire the former corporate campus of Sun Microsystems first. Facebook will then dive into a sale-leaseback with Deutsche Bank AG’s RREEF. RREEF LLC is a commercial real estate asset manager for Deutsche Bank AG. RREEF LLC had represented their client, the Wisconsin State Investment Board, and bought the property from Oracle for approximately $100 million. We are not aware if Deutsche Bank AG’s RREEF was entered into a 1031 Exchange with this property.
The sale-leaseback property was constructed between 1993 and 1995. The net leased property was the corporate headquarters for Sun Microsystems until it was acquired by Oracle. Facebook will rent the commercial property that is approximately one million square-feet. This sale-leaseback property is a nine building campus. Facebook will enter into a 15-year sale-leaseback contract. Facebook worked diligently and has an option to purchase this net leased property in five years.
This is the largest net lease deal in Silicon Valley since 1991, back when Apple signed an a net lease agreement on approximately 865,116-square-feet. Facebook, one of the fast-growing companies, is moving their headquarters from Palo Alto, California. Facebook was looking for a space that they can grow into, taking care of their long-term business needs. This will also allow them to remain in the Silicon Valley area and be in an area that offers a "small-community feel."
When this deal was wrapping up, Facebook acquired the adjacent commercial property. That commercial property is owned by an affiliate of the car manufacturing Titan, Ford Motors. These two Menlo Park commercial properties are connected via an underground commuter tunnel. However Facebook has no current plans to develop that commercial property, and can use that for future growth of a joint venture (JV).
Facebook has agreed in their net lease property deal to foot the bill for remodeling the building, to suit its needs. Obviously, Facebook can afford this as they recently received a major investment worth approximately $1.5 billion. The general contractor who is currently renovating one of the newly acquired buildings is SC Builders Inc. of Sunnyvale, California.
The sale-leaseback property is located at 10 Network Circle, in Menlo Park, with 94025 as their zip code. The sale-leaseback property is situated on 57 acres. Facebook Employees will be able to move to the new corporate headquarters in waves. The plan could have Facebook Employees start to move as soon as June or July. The growing company, Facebook employs over 2,000 people. Currently, Facebook has approximately 1,400 of them are in the Palo Alto location. Facebook also has offices in 10 United States cities and a dozen international locations, including London, Tokyo and in Paris, France.
Menlo Park is a magnificent area, just a few minutes away from the current Palo Alto Facebook headquarters. This south Bay Area is excellent for NNN Commercial Real Estate and has been a venture-capital hub for quite some time. Some of the (VC) Venture Capital Firms headquartered here are Khosla Ventures, Kleiner Perkins Caufield & Byers, Sequoia Capital and Silver Lake Partners. These Venture capital firms are heavily populated along the Sand Hill Road area.
Contact Net Lease Properties to sell your net lease properties, or purchase NNN Property.
If you are ready to purchase Commercial Real Estate or a Triple Net Leased Property, you can apply for Commercial Loans at Loanrise.com.
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