With Silicon Valley rents continuing to skyrocket -- anddowntown San Jose rates up nearly 43% during 2Q -- the companybegan to consider an unusual move. Buying, it decided, couldpossibly prove cheaper than renting in the Valley's overheatedoffice market.
After searching for space, they found it in a two-building,200,000-sf facility owned by Divco West. Divco was asking $5.75/sffor rent, which would total $138 million over the next decade.
So Xilinx paid $74 million cash for the North First Streetproperty. Divco didn't feel any pain either. They paid $20 millionfor the building in 1997.
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