SAN BRUNO, CA—Technology companies continue to vie for space along the Peninsula with competition on fire for class-A digs in key locations. An all-cash, off-market example of that heated activity is Hudson Pacific Properties Inc.'s sale of Bayhill Office Center at 999-1001 Bayhill Dr. to online video distribution company, YouTube. The campus sold for $215 million before certain credits, prorations and closing costs.
Hudson Pacific acquired the 554,328-square-foot class-A office campus as part of the San Francisco Peninsula and Silicon Valley portfolio purchased in April 2015 from Blackstone. The asset was non-core to Hudson's portfolio.
Hudson Pacific Properties chairman and CEO Victor Coleman tells GlobeSt.com: "Hudson is very pleased with the sale of this property to YouTube. The asset was sold at a premium to the original purchase price. This transaction reflects continued strong demand for high-quality office space in Silicon Valley and the San Francisco Peninsula."
Bayhill Office Center is situated in a campus-like setting, with amenities including an on-site café, gym and property management. Located between San Francisco and the Interstate 101 and Highway 92 corridor, it is convenient to freeway access, public transit service, and close to San Francisco International Airport and downtown San Francisco. Located at the intersection of Highway 101 and Interstates 280 and 380, the location provides an excellent alternative to a hectic urban environment, while offering convenience and services. For example, there is free shuttle service provided from Bayhill Office Center to the nearby BART station which also services the airport, along with the Caltrain station. It is also within walking distance to the Bayhill Shopping Center and the shops along El Camino Real.
The current YouTube headquarters address is 901 Cherry in San Bruno, which was purchased by Google late last year. YouTube is a unit of Alphabet.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
