An affiliate of Bluerock, a New York-based alternative asset firm, purchased an office hub in Sunnyvale for $330.7M and inked a long-term leaseback with the office's tenant through 2047.

The complex at 1133 Innovation Way near Moffett Field includes an eight-story, Class-A office building totaling 319K SF. It houses Juniper Networks, which Hewlett Packard Enterprises acquired last year. HPE bought the enterprise networking, switching and router manufacturer for $14B.

HPE still occupies and owns an adjacent building at 1137 Innovation Way. Selling the building at 1133 was part of HPE's management strategy for its portfolio of real property assets, an HPE spokesperson told the Silicon Valley Business Journal.

According to The Mercury News, Bluerock funded the acquisition through a $310M loan from a group led by Wilmington Trust. 

HPE in 2018 relocated its main Silicon Valley offices to north San Jose from Palo Alto, where it was founded in a one-car garage in 1939. HPE in 2020 announced it was relocating its global headquarters to the Houston suburb of Spring and opened a 440K SF, 60-acre corporate campus there in 2022.

The purchase by Bluerock is the latest Bay Area office acquisition in recent months to exceed $1,000 per SF, underscoring growing investor confidence in office properties anchored by investment-grade and premier tenants.

In mid-July, Shorenstein purchased 550 Allerton St., a 77K SF, six-story property in downtown Redwood City, for $78M. The building was 81% leased and anchored by international law firm Gunderson Dettmer, which relocated from Silicon Valley to the newly built midrise tower in 2018.

But vacancy continues to pressure many office landlords across the Peninsula and South Bay area. Office vacancy in all Peninsula submarkets was 23.8% in the second quarter of 2026, Kidder Mathews reported.

Vacancy in Redwood City was substantially higher at 37.4%, followed by South San Francisco at 34.2%. With a limited development pipeline of 712K SF, vacancy is expected to tighten as artificial intelligence, medtech, fintech and professional services companies seek new space in key Peninsula submarkets, Kidder Mathews researchers said.

Office vacancy in Silicon Valley in Q2 was much lower at 16% — down 170 basis points year-over-year — with 1.1M SF of new product in the development pipeline, Kidder’s research group said.