NVIDIA Eyes Bay Area Expansion

NVIDIA is expanding its Silicon Valley office holdings. The firm intends to buy from The Sobrato Organization a 500,000-square-foot campus located across the road from its headquarters, according to SiliconValley.com.

NVIDIA has leased the four buildings at 2701, 2711, 2721 and 2731 San Tomas Expressway in Santa Clara since April 2010. The tech company agreed to acquire the assets along with a parking garage at 2741 San Tomas Expressway. The price to be paid was not reported and a closing date was not disclosed.

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Completed in 2010, the 19.2-acre campus comprises three-story, 125,000-square-foot buildings with 41,667-square-foot floorplates, according to CommercialEdge. NVIDIA was the sole tenant at the property that’s across from its 2788 San Tomas Expressway corporate offices.

NVIDIA keeps expanding

In May, NVIDIA paid former landlord Preylock Holdings nearly $375 million for several sites also located near its headquarters, according to media reports. That deal included six parcels of land, eight buildings, two parking structures and 2 million square feet of future development rights, the San Francisco Standard reported. Data centers and lab facilities were part of that transaction as well.

In more recent expansion news, the firm leased an office and research building in north San Jose, Calif., from Menlo Equities in December. The 101,600-square-foot property is at 300 Holger Way.

Office sales in the Bay Area

The Bay Area ranked third in the U.S. for office sales volume last year, after Manhattan and Washington, D.C., according to a CommercialEdge report. The market witnessed more than $2.1 billion in transactions year-to-date as of November, with assets changing hands, on average, for $293 per square foot.

In one of the largest deals of the period, Microsoft paid $330 million for a five-building campus in Mountain View, Calif. The sale price equated to $513.2 per square foot.