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Stanford Scooping Up 90% of 1M-SF Midpoint Tech Park

REDWOOD CITY, CA-The University will close next month on a newer four-building, 361,000-sf portion of the park that was built for ExciteAtHome but never occupied. Last month, it closed on eight older buildings totaling 535,000 sf.

By Brian K. Miller | Updated on November 07, 2005

REDWOOD CITY, CA-Stanford University is buying up 90% of the one- million-sf Midpoint Technology Park here for an as yet undisclosed price. The seller is a joint venture of the France-based corporate bank Calyon and San Francisco-based TMG Partners.Bill Phillips, managing director of real estate for Stanford Management Co., tells GlobeSt.com the University will close next month on a four-building, 361,000-sf portion of the park that was built recently for ExciteAtHome but never occupied. Last month, it closed on eight older buildings totaling 535,000 sf that are 60% leased, he says.Phillips, who negotiated the transactions, declined to discuss the sale prices. Published reports have put the price of the eight-building acquisition at around $100 million. Phillips tells GlobeSt.com it’s not the right price but it’s in the vicinity. He said the price was well below replacement cost, which he estimates at between $225 per sf and $250 per sf.

The newer buildings were acquired for Stanford Hospitals and Clinics, Phillips says. The other buildings were acquired for eventual redevelopment. Meantime, he says the 60% occupancy rate covers expenses and at least one of the vacant buildings, a 30,000-sf data center, will be utilized immediately as an off-site data center for the university.

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