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Facebook wants to kill two birds with one stone.
The social media giant's massive campus expansion project—which includes two new skyscrapers and a 200-room hotel—has caused an uproar. The expansion is expected to bring 6,500 new workers to its Menlo Park headquarters, a problem considering the housing shortage in the Silicon Valley.
In an effort to help solve the problem, Facebook’s proposed project includes the development of 1,500 apartment units on its campus—15% of which will be affordable housing. This is in addition to promises to subsidize rents for 22 apartments at 777 Hamilton Ave for the next five years.
Bentall Kennedy SVP of development Lydia Tan (below) tells us there’s always been a housing shortage and in this last economic boom more jobs have been coming to the Bay Area, further exacerbating the issue.
The Project
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Pitched in March 2015 by developer Hibiscus Properties on behalf of Facebook, the project was approved by the City of Menlo Park last month.
It calls for the demolition of several buildings on the firm’s TE Connectivity site, which will then be developed into two 75-foot office buildings totaling about 962.4k gross SF.
The 1,500 apartment units are a separate phase of the project, and are still pending zoning approval. If given the green light, the new apartments will be built on Facebook’s Prologis site—a 56-acre industrial park sold to Facebook last year for $400M, and a percentage will be open to the general public.
“The politics of additional development despite the Facebook proposal tends not to bring as much excitement and enthusiasm about continuing to accommodate growth,” Lydia tells us. “The fact that Facebook is taking on the responsibility to build is great, and the fact that the city is willing to entertain that as part of the package is great.”
Housing Shortage
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The San Francisco, San Mateo County and Santa Clara County areas combined have added approximately 380,000 jobs between 2010 and 2015, according to the Wall Street Journal. Housing production during that same five-year span has only seen the development of 58,000 units, according to the US Census Bureau.
The influx of tech firms to the area has caused housing costs to soar and many are condemning the city for not creating more housing.
Under the agreement made with the city, the approved project comes with added benefits to Menlo Park. Facebook has agreed to pay the city a one-time payment of $15M—which will be used to fund studies, subsidies and projects for the city. This is in addition to bringing in an estimated $636k in revenue to the city annually.
Facebook VP of global facilities and real estate John Tenanes tells Bisnow the future of Menlo Park is extremely important to the firm, which is why it's working with city and community leaders. “We understand that our growth affects the everyday lives of our neighbors, and we want to be respectful and thoughtful about how we approach our expansion."
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