In the biggest lease deal in Silicon Valley since 1991 when Apple signed an 865,000-square-foot lease agreement, Facebook held a news conference at Menlo Park City Hall on Tuesday explaining that the crowding in their current location pushed the move to a larger space in Menlo Park where the social networking company will assume multiple office buildings to serve as its headquarter campus according to a CNN article. The company will begin moving its employees this summer and said that it would be renovating the campus to make it a fun place to work.
"There are very few opportunities for a city to have an 'it' company," Mayor Richard Cline said of Facebook after the press conference. "And we also have facilities that are vacant. This solves a big problem." Facebook will rent the one million square feet, nine building campus from Deutsche Bank AG’s RREEF in a 15-year sale-leaseback deal; RREEF purchased the 57-acre property from Sun Microsystems owner Oracle Corp. for an undisclosed amount. The property was built between 1993 and 1995 and was the corporate headquarters for Sun Microsystems until it was acquired by Oracle.
Chief Financial Officer David Ebersman noted that Facebook has the option to buy the property in five years. The company also bought an adjacent 22-acre property, connected to the new site by a tunnel, for future development.
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