Prologis, Inc., a global leader in industrial real estate, announced the sale of a 21-building, 56-acre industrial park to Facebook, Inc.
Menlo Science & Technology Park is located on Willow Road between Highway 101 and the Dumbarton Bridge in Menlo Park, Calif. Prologis has owned and managed the property since 1998.
“Land constraints and increased urbanization pressures in markets such as Silicon Valley support the monetization of select infill assets,ˮ said Michael Curless, chief investment officer, Prologis.
“This project and others in our portfolio benefit from our dedicated team who understand how to identify and unlock the intrinsic value in our value-added conversion properties. Our team has spent the past several years planning the conversion of this site for higher and better use,ˮ said Mark Hansen, senior vice president, value added investments, Prologis.
“We are pleased to see our efforts materialize and provide a strong foundation for the future redevelopment of the site.ˮ
As part of the transaction, Prologis will provide ongoing management services on behalf of Facebook.
The Silicon Valley property has been reportedly valued at $400 million and its sale is expected to further bolster Prologis’ bottom line.
Last month, helped by higher occupancy, Prologis reported better-than-expected results for the fourth quarter of 2014 and core FFO (funds from operations) per share of 48 cents.
Facebook has previously announced its intention to expand in California.