MENLO PARK, CALIF. — Prologis Inc. (NYSE: PLD) has sold a 21-building, 56-acre industrial park in Silicon Valley to Facebook Inc. (NASDAQ: FB). Menlo Science & Technology Park is located on Willow Road between Highway 101 and the Dumbarton Bridge in Menlo Park. Prologis has owned and managed the property since 1998.
“Land constraints and increased urbanization pressures in markets such as Silicon Valley support the monetization of select infill assets,” says Michael Curless, chief investment officer of San Francisco-based Prologis. “This project and others in our portfolio benefit from our dedicated team who understand how to identify and unlock the intrinsic value in our value-added conversion properties.”
The sales price was not released, but the Silicon Valley Business Journal estimates that the asset traded for roughly $400 million. As part of the transaction, Prologis will provide ongoing management services on behalf of Facebook.
Social networking heavyweight Facebook has roughly 890 million daily active users and roughly 1.4 billion monthly active users, according to its fourth-quarter 2014 earnings report. The Menlo Park-based company invested roughly $1.8 billion in property and equipment in calendar year 2014.
“Our team has spent the past several years planning the conversion of this site for higher and better use,” says Mark Hansen, senior vice president of value-added investments at Prologis. “We are pleased to see our efforts materialize and provide a strong foundation for the future redevelopment of the site.”
As of Dec. 31, 2014, Prologis owned or had investments in properties and development projects expected to total approximately 590 million square feet in 21 countries, either on a wholly owned basis or through co-investment ventures. The company leases distribution facilities to more than 4,700 customers, including third-party logistics providers, transportation companies, retailers and manufacturers.
Prologis’ stock price closed at $44.66 per share on Friday, Feb. 6, up from $40.34 per share at this time last year.
Facebook’s stock price closed at $74.47 per share on Friday, Feb. 6, up from $63.55 per share at this time last year.
— John Nelson