Blackstone Pays $100M for Office and Research Building Housing Nvidia
Blackstone Real Estate is expanding its footprint in Silicon Valley, purchasing 350 Cobalt Way for $99.6 million.
The Sunnyvale property was sold by PSAI Realty Partners in a deal that was marketed by JLL, according to The Real Deal, citing a report from Mercury News.
PSAI cashed in on a premium compared to the just $31 million price tag it paid to acquire the property from Fujitsu in 2023. Fujitsu ultimately decided to leave the property for good after the tech firm's lease expired later that year, according to The Real Deal.
Since 2024, Nvidia has occupied the entire 134,200-square-foot building that currently holds power capacity of 10 megawatts. The chip and software designer's lease isn't set to expire until August 2036.
After undergoing renovation in 2022, Nvidia is adding additional improvements at 350 Cobalt to support data center capabilities in the future, The Real Deal said.
Also, in Silicon Valley, Nvidia owns its headquarters in Santa Clara. It paid $374 million for the HQ complex at 2788 San Tomas Expressway in 2024.
The office market in Silicon Valley tells us two different stories: one, leasing activity remains a flight to quality and two, availability is at historic highs, according to a first-half 2026 report from Savills. Demand for high-quality space drove second-quarter leasing to 3 million square feet, well above the 2 million square feet posted in the same period a year ago.
Savills, going forward, is bullish that the market will continue to see greater pricing power and improving fundamentals despite the high availability. Class A rents increased by 6.7 percent year-over-year in the second quarter.
Source: GlobeSt/ALM