Здание в Пало-Альто куплено за 163 млн долларов, что на 44% дешевле цены 2019 года

PALO ALTO — A tech hub in Palo Alto that was once home to a major defense contractor was bought for nearly half of its prior value, documents show. The two buildings, at 3825 and 3875 Fabian Way, were acquired for $163 million by an affiliate linked to real estate firm Harvest Properties, documents filed on July 15 in Santa Clara County show. The new owner is an LLC based at Harvest’s headquarters in San Francisco. RELATED: Real estate firm acquires tech and research building in North San Jose The purchase price represents a 44% value nosedive from the $291 million the seller, Alexandria Real Estate Equities, paid in 2019. The buildings together total 485,200 square feet. The 3825 Fabian building is 290,900 square feet and the 3875 Fabian building is 194,300 square feet. The transaction is an example of the weakness in office building values in the years following the COVID-19 outbreak in 2020. When Alexandria Real Estate Equities bought the buildings, the office market was flying high. Tech companies engaged in a shopping spree for work sites throughout the Bay Area. In Alexandria’s case, Google had just bought office sites near the Fabian Way buildings. After pandemic-related shutdowns ended, disruptions had forced companies to rethink requirements for office space, leading some to scale back office footprints. The slump in office leasing also unleashed waves of slumping values, failed property loans and even foreclosures of delinquent mortgages.