SAN BRUNO, CALIF. — Hudson Pacific Properties (NYSE: HPP) has sold Bayhill Office Center in San Bruno to online video distribution company YouTube for $215 million, or $388 per square foot. The sale was an all-cash, off-market transaction.
YouTube is a division of Google Inc. (NASDAQ: GOOG) headquartered in San Bruno, 12 miles south of San Francisco. It was founded in 2005 and was purchased by Google the next year. The campus is adjacent to YouTube’s existing headquarters.
YouTube is San Bruno’s largest private employer, according to the Silicon Valley Business Journal, with 800 employees. YouTube has not announced any plans for the new space, but has been tweaking its business strategy. In October, the company launched YouTube Red, a paid subscription service.
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.
Hudson Pacific Properties acquires, repositions, develops and operates office, media and entertainment properties in West Coast markets. Founded in 2006 as Hudson Capital, the company went public in 2010 as a REIT.
Hudson Pacific’s portfolio spans 16.8 million square feet, including land for development, in California and the Pacific Northwest.
Google’s stock price closed at $688.61 per share on Jan. 19, up from $506.90 one year ago. HPP’s stock closed at $24.43 on Jan. 19, down from $32.58 one year ago.
— Haisten Willis