Office and research building located at 222 Commercial Street in Sunnyvale.
SUNNYVALE — A big tech company expanded its Bay Area real estate binge by purchasing a nondescript building in the South Bay. The purchase price is now well over $255 million.
Applied Materials paid $15 million to buy an industrial and warehouse building in Sunnyvale, according to documents filed April 9 with the Santa Clara County Recorder's Office.
The building is located at 222 Commercial Street in Sunnyvale and measures 24,000 square feet, according to the Loopnet commercial real estate listing service.
Santa Clara-based Applied Materials has amassed a number of properties in Sunnyvale in recent years.
All of the properties the semiconductor equipment maker has purchased in Sunnyvale are relatively close to the company's headquarters on Bowers Street in Santa Clara.
Including recent acquisitions, Applied paid $296.4 million to purchase various properties in Sunnyvale.
The company, an equipment manufacturer that manufactures semiconductors and displays, has also turned to sublease agreements to expand its base in its hometown of Santa Clara.
Applied Materials subleased 246,000 square feet of space at 3333 Scott Blvd. from Aruba Networks. In Santa Clara, we took over that entire office building. The company also subleases 122,000 square feet of land at 3325 Scott Blvd. From Palo Alto Networks.
Applied's property acquisition efforts in Sunnyvale began in August 2018 when it purchased the building at 928 East Arks Avenue.
The deal is a reminder that the companies that make up the Silicon Valley economy never move forward in unison.
The largest single transaction in Applied's acquisition activity in Sunnyvale occurred in 2019, when the company leased a tech campus of large office buildings to Apple, with addresses ranging from 1050 to 1090 East Arcs. and paid $109 million.
More property purchases may be on the table, according to county documents.
In July 2023, Applied Materials entered into an agreement to purchase the shuttered Fry's Electronics site at 1077 E. Ark., according to public records on file with county officials. did. However, as of early April, the deal had not yet been completed.
The Sunnyvale property purchase could position Applied Materials to power its plans for a huge new technology complex.
The future Applied Materials complex will be known as the Equipment and Process Innovation and Commercialization Center.
