Two South Bay office buildings are bought for more than $300 million
A group led by Bay Area real estate firm Ellis Partners and Boston-based hedge fund Baupost Group purchased two Santa Clara office buildings, including the San Francisco 49ers headquarters, for over $300 million, marking the largest office deal in Silicon Valley in 2026. The purchase price was 42.4% higher than the assessed value, signaling a rebound in the South Bay leasing market despite the complex being only 77% leased.
Two office buildings at Great America Commons in Santa Clara were sold for more than $300 million, making it the largest office deal in Silicon Valley this year. Documents filed May 22 with the Santa Clara County Recorder’s Office show the $310 million sale was led by a group including Ellis Partners and Baupost Group, while the seller was an affiliate of PGIM, Prudential Financial’s asset management unit. The property, located at 4555 and 4655 Great America Parkway, spans 637,100 square feet across six-story buildings and includes the San Francisco 49ers headquarters, along with tenants like Texas Instruments, Fujitsu Research of America, and NeoLife International. The campus is 77% leased and features amenities such as sports courts, an outdoor theater, and a fitness center. The purchase price exceeded the January 2025 assessed value of $217.7 million by 42.4%, reflecting a potential increase in future valuations and property tax revenue for local agencies. Financing for the deal included $232.1 million from lenders like Apollo Global Funding and Athene Annuity & Life. This transaction follows another major acquisition by the same buyers in August 2025, when they paid $210 million for a three-building office complex in Santa Clara. The deals align with a reported rebound in South Bay office leasing activity during the first quarter of 2026. The Great America Commons sale is the largest office property deal in Santa Clara County this year, second only to the $691 million purchase of San Francisco’s Transamerica Pyramid in March. The complex’s high valuation suggests growing confidence in the Bay Area’s commercial real estate market despite lingering challenges in office demand.
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