Blackstone Buys Nvidia-Leased Sunnyvale R&D Building for $99.6M

Blackstone has paid $99.6 million for 350 Cobalt Way, a 134,200-square-foot research and development building in Sunnyvale leased in full to Nvidia, in a deal that values the property at more than triple what its seller paid for it three years ago.

Why it matters

The sale is a live data point in a trade developers and lenders are watching closely: a suburban Silicon Valley R&D building, the kind of asset that sat half empty for years after the office downturn, is now financeable and tradeable again because an AI-era tenant signed a long lease. PSAI Realty Partners bought the two story building for roughly $31 million in 2023, when it was vacant following Fujitsu’s departure. Nvidia took the entire building in 2024 and built it out as a research lab with data center capability, and that 12 year commitment is what let Blackstone underwrite a price near $742 a square foot. For anyone holding or evaluating similar Sunnyvale and Moffett Park product, the lesson is specific. Power capacity and a credit tenant now command a premium that generic office space cannot touch.

The numbers

Blackstone’s $99.6 million purchase works out to roughly $742 per square foot for the fully leased building, according to The American Developer’s own calculation from the reported price and square footage. PSAI Realty Partners paid about $31 million for the same property in 2023, meaning the price more than tripled in three years. The building carries 10 megawatts of power capacity, a feature both outlets covering the sale flagged as the reason it commanded premium pricing over comparable vacant R&D stock nearby. Nvidia’s lease runs through August 2036, giving Blackstone roughly a decade of contracted income from a single, deep pocketed tenant.

What’s next

Watch whether Blackstone or other institutional buyers start chasing similar power equipped R&D buildings across Sunnyvale and the wider Bay Area, particularly ones near Nvidia, OpenAI or other AI-lab tenants who need lab and data center hybrid space rather than plain office floors. The gap between this sale and 2023 pricing suggests more owners of half vacant Silicon Valley R&D product will now test the market rather than wait, especially if they can land even a partial AI tenant commitment.