Applied Materials shops for Sunnyvale properties, lands Apple as a tenant

SUNNYVALE — A shopping spree for Sunnyvale properties by tech titan Applied Materials has made it the landlord for another Silicon Valley behemoth: Apple.

In recent weeks, Applied Materials, one of the world’s biggest makers of equipment to manufacture semiconductors, has spent an eyebrow-raising $113.6 million to acquire three properties in Sunnyvale, according to Santa Clara County public records.

The deal is a reminder that more than a few tech companies besides behemoths other than Google, Apple, Facebook, and LinkedIn have embarked on expansion quests to capture more elbow room for their growing operations.

On July 23, Google paid a jaw-dropping $1 billion for several Sunnyvale buildings and a big chunk of land. Yahoo occupies some of the just-sold properties. Last November, Google spent $1 billion to buy a large research and office park in Mountain View.

All three of the recent Applied Materials purchases occurred in a roughly rectangular area of Sunnyvale that’s bounded by East Arques Avenue, Lawrence Expressway, Central Expressway, and Wolfe Road.

Santa Clara-based Applied Materials already is the owner of a big complex in this rectangle at 974 E. Arques Ave.that’s known as Applied Materials Building 81.

In the most recent transaction, Applied Materials became the landlord for Apple at Sunnyvale Research Center, an office complex that Apple leased in 2012.

Applied Materials paid $100 million for the office park, according to Santa Clara County public records that were filed on July 24. Applied paid cash to complete the transaction. Applied didn’t respond to a request from this news organization for a comment about the situation.

Cupertino-based Apple is leasing all 224,000 square feet of Sunnyvale Research Center, whose addresses range from 1050 to 1090 E. Arques Ave.

The only details of the lease that came to light in 2012 was that Apple’s initial rental deal was for a five-year term. The terms of the lease renewal haven’t been disclosed. Apple hasn’t discussed its leasing agreements at the office park.

Applied Materials also bought some smaller properties in the vicinity in June.

On June 27, the equipment maker paid $13.7 million for two Sunnyvale sites. A property at 930 E. California Ave. was bought for $8.7 million the other, at 190 Commercial St., was bought for $5 million, the county documents show.