A San Francisco real estate investment company paid $178 million Thursday for an office building in downtown Sunnyvale leased to Uber Technologies Inc.
Drawbridge Realty spent about $1,134 a square foot to acquire the five-story, 157,000-square-foot structure from JP Morgan, according to a press release from Drawbridge and Charlie McEachron, the company’s chief operating officer.
The real estate firm was attracted to the building by its location, McEachron told the Silicon Valley Business Journal. Situated at 200 S. Mathilde Ave., it’s within Sunnyvale’s central district, which is being redeveloped with office buildings, multifamily housing, restaurants and retail space. It’s a short walk from the city’s Caltrain station. And it’s near U.S. Highway 101 and California State Route 237.
“This is property that has an incredible location,” McEachron said.
A JP Morgan (NYSE: JPM) spokesman declined to comment on the transaction.
Representatives of Eastdil Secured, which represented JP Morgan in the deal, did not immediately respond to request for comment.
Uber leased the entire building in 2019, according to McEachron. Due to the Covid-19 pandemic, it hasn’t yet moved into the structure yet, but it’s finishing out its space and its lease runs through 2032, he said.
“They consider it part of their Bay Area headquarters,” he said.
It’s unclear how many workers Uber (NYSE: UBER) plans to base at the building. Company representatives did not immediately respond to a request for comment.
Drawbridge owns properties in 12 different markets nationwide, McEachron said. Among them are five in Silicon Valley, including a pair of properties in Santa Clara and a four-building campus in North San Jose, he said.
Read More: San Francisco’s Drawbridge Realty pays $180M for Uber-leased Silicon Valley building