MENLO PARK, CA—As GlobeSt.com reported Friday, locally based Facebook Inc. purchased a 21-building, 56-acre industrial park from Prologis Inc. Industry sources have put the price tag on the purchase at $400 million, but sources involved could not confirm that price to GlobeSt.com by deadline.
GlobeSt.com has also learned that Steve Berkman, a partner at Paul Hastings and Graham Babbit, associate at the firm, represented Facebook in the acquisition. Berkman was unavailable to provide comment at this time, but GlobeSt.com will update if we learn more.
Not even a year ago, Facebook purchased 60 acres in Menlo Park close to its corporate headquarters. As GlobeSt.com posted in September, Facebook is said to have paid $101.6 million for the property at 300 Constitution Ave. The property is the home of TE Connectivity, and several hundred of that company's workers will remain there through a leaseback agreement with Facebook.
The campus includes about 10 buildings totaling roughly 1 million square feet, and is near Facebook's current headquarters in Menlo Park.
According to reports, like other local technology companies, Facebook is banking land against future growth. And the company doesn't exactly look as though it has plans on slowing down its expansion anytime soon.
According to Q4 results, revenue for the fourth quarter of 2014 totaled $3.85 billion, an increase of 49%, compared with $2.59 billion in the fourth quarter of 2013. Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have increased by 53%.
"We got a lot done in 2014. Our community continues to grow and we're making progress towards connecting the world," said Mark Zuckerberg, Facebook founder and CEO, in the earnings report.
And a recent report by Deloitte, titled Facebook's Global Economic Impact, analyzed how Facebook's marketing, platform, and connectivity effects have facilitated growth and jobs around the world. The study estimated that the company, with an approximately $8 billion cost base, enabled global economic impact of $227 billion and 4.5 million jobs around the world in 2014.
More specifically, the Deloitte's report looked at how Facebook stimulates economic impact by providing 1) tools for marketers; 2) a platform for app developers; and 3) demand for connectivity, meaning data usage and mobile devices.
GlobeSt.com will update this story as we learn more about the company's plans for the property.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
