Blackstone Group Inc. agreed to purchase an office complex in Silicon Valley that’s leased to Roku Inc., a sign that newer properties with long-term tenants are finding buyers despite uncertainty created by the pandemic.
The two buildings Blackstone is buying are part of a project called Coleman Highline, a new development that’s walking distance to a Caltrain station and the stadium where Major League Soccer’s San Jose Earthquakes play.
The purchase price is about US$275 million, or roughly US$770 per square foot, according to a person familiar with the matter who wasn’t authorized to speak about the private transaction.
Roku, a maker of devices for streaming TV, moved its headquarters to the development last year. Blackstone’s deal was previously reported by Real Estate Alert, which said Roku has more than nine years remaining on its lease.
Sales of office buildings have slowed dramatically this year as the pandemic forces investors to reconsider what properties are worth. With many companies allowing employees to work from home -- in some cases permanently -- questions are mounting over whether office demand will wane. Even so, sellers with newer properties leased to high-quality tenants have been able to complete transactions.