The seller is Whitehall Parallel Real Estate LP XIII, one of the Whitehall Real Estate Funds managed by Archon Group LP, an affiliate of the Dallas-based Goldman Sachs Group Inc. WXIII is selling the buildings and its leasehold rights on the underlying dirt, which is owned by the City of Mountain View.

The addresses of the campus are 1600 Amphitheatre Parkway and 1200-1500 Crittenden Lane. The ground lease related to 1600 Amphitheatre contains an initial term expiring in 2050 with four options to extend the term for additional periods of ten years each. Rent payments under the ground lease will be approximately $140,000 per month and will increase by 4% each year thereafter. In addition, every 10 years the annual base rent will be readjusted to equal 7% of the then-current fair market value.

The ground lease related to 1200-1500 Crittenden Lane contains an initial term expiring in 2051, not including four 10-year extension options. Rent payments under the lease will be approximately $175,000 per month and will increase by 4% each year thereafter and be adjusted every 10 years such that the annual rent it equals 7% of the then market value.

Prior to entering into the purchase agreement, Google subleased certain office space at 1600 Amphitheatre from Silicon Graphics Inc., subject to a master commercial lease between SGI and the sellers. As a result, the purchase of the property is subject to, among other things, the approval by the bankruptcy court overseeing SGI's bankruptcy settlement agreement between SGI and the sellers.

Google expects the headquarters transaction to close no later June 30; however, the sellers may extend the closing date for a period of up to 15 days in order to satisfy certain closing conditions.

Shares of Google closed Wednesday at $384.39, more than four times the price of its August 2004 IPO. The seven-year-old company currently employs about 7,000 workers and adds about a dozen new workers every day. To accommodate its growth, Google last year struck a deal to build a second 1-million-sf campus near its existing headquarters, on the grounds of NASA's Ames Research Center.

Last week, Santa Clara, CA-based Sun Microsystems agreed to sell its largest campus--10-building 1.4-million-sf campus in Newark, CA that comes with excess land for another 400,000 sf of built space--for $215 million plus closing costs. The buyer, San Diego-based BioMed Realty Trust, intends to recast the campus as a home for life science tenants. The sale is expected to close in the third quarter.

Instant Insights /

Google Buying HQ Buildings for $319M

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