A few months after making a blockbuster deal in Hollywood, Blackstone Group is making another big bet on streaming video with the purchase of a San Jose office property leased to Roku.
Blackstone’s non-traded real estate investment trust, BREIT, will pay $275 million, or around $770 per square foot, for two buildings in the Coleman Highline development, Bloomberg News reports.
Roku moved its headquarters to the property last year and has nine more years on its lease. The digital media company rents 730,000 square feet of office space at the complex, which was developed by Hunter Properties.
In August, Blackstone bought a 49 percent stake in Hudson Pacific Properties’ $1.65 billion Hollywood production studio and office portfolio.
Netflix leases 31 percent of the space, and ABC, Disney and CBS/Viacom lease are among the other main tenants.
San Jose has attracted attention from major Bay Area companies in recent years, according to the Mercury News. Adobe is expanding its office complex in downtown San Jose. Not far away, Google has proposed a 79-acre office-heavy mixed-use development near San Jose’s Diridon Station. Apple has been buying properties for an 85-acre campus in north San Jose.
[Bloomberg] — Dennis Lynch