Google Buys Half of Tech Park

REDWOOD CITY, CA—Goggle Inc.  has purchased six office buildings northwest of its Mountain View headquarters from Starwood Capital Group LLC and Blackstone Group LP in a $585 million deal. Bloomberg reported the deal today, saying that two persons had provided the news agency with the details.

Google now has confirmed the deal to GlobeSt.com, with a spokesperson for the company noting that "it's such early days we won't be commenting further on the record."

The properties are part of the Pacific Shores Center office park, about 11 miles from Googleplex, as the tech giant calls its headquarters. Bloomberg says its sources asked not to be named, noting that it was a private transaction. The report went on the say that Google's quarterly report, filed Thursday, indicated that it had purchased unspecified land and buildings for $585 million.

The properties Google appear to have purchased total 934,200 square feet of class A office space, plus a 38,000-square-foot fitness center. That would be more than half of the 1.7 million square feet of office space at Pacific Shores.

Earlier this month, the company signed office-lease agreements for a total commitment of about $1 billion through 2028, according to its filing.

Starwood Capital bought Pacific Shores Center in 2006, from its developer and Walton Street Capital LLC, then resold two of the buildings.

An unidentified source tells GlobeSt.com that this transaction is a part of Google's strategy here on the peninsula, which involves making investments for the future to meet the needs for the natural growth of the company.

Google has previously been quoted as saying that the company believes that "proximity is important for creativity and innovation."

We will update this story as we learn more.