Apple Expected to Buy Another Silicon Valley Campus

[MacRumors]

Apple is set to purchase another campus in Silicon Valley, California, amid almost $1 billion of property purchases this year.

According to The San Francisco Chronicle, Apple is purchasing the four-building Mathilda Campus, located at 505–599 North Mathilda Avenue and 605 West Maude Avenue, from Kilroy Realty Corporation. The site comprises approximately 663,000 square feet of office space, of which Apple already leases over 580,000 square feet, which is roughly 88% of the complex. The sale is expected to close in the third quarter of 2025 at a rate of $550 per square foot.

Kilroy disclosed in its second-quarter earnings report that it is under contract to sell a "four building campus in Silicon Valley" but did not specify the buyer. Two individuals with direct knowledge of the transaction confirmed to The San Francisco Chronicle that the buyer is Apple and that the property in question is the Mathilda Campus.

The Mathilda Campus purchase follows two other significant acquisitions by Apple in recent months. In June, Apple finalized the $166.9 million purchase of Cupertino Gateway, a three-building complex at 10200 North Tantau Avenue, adjacent to its Apple Park headquarters. Then, in July, the company acquired two neighboring office properties at 615 and 625 North Mathilda Avenue, directly adjacent to the Mathilda Campus, for $350 million. Like the Mathilda Campus, Apple had previously leased and occupied the majority of those properties.

Combined, these three transactions amount to a total outlay of approximately $882 million within a span of several weeks. All three sites are located within a few miles of Apple Park.

Article Link: Apple Expected to Buy Another Silicon Valley Campus

 

[acblue94]

How about come out with a flip phone and innovate again.

 

[turbineseaplane]

Must be for something other than AI, since they keep losing staff in that department.

 

[pbau]

Hopefully then can put money to developers and AI research as well..

 

[switz]

Asperations of becoming a land lord since their AI expertise seems to be missing?

 

[arkitect]

I wonder if this has more to do with bolstering investor confidence than anything else.

Signalling that they have major expansion plans obviously is a positive sign for investors… Apple need not even do anything with these properties. Sell later and profit.

 

[NetMage]

Interesting that they are purchasing leased real estate when less successful companies are selling property they are using and leasing it back.

 

[NetMage]

Signalling that they have major expansion plans obviously is a positive sign for investors… Apple need not even do anything with these properties. Sell later and profit.

That makes no sense given that the article plainly states they are already using the majority of the properties under lease.

 

[egdiroh]

It probably just made financial sense, or this was defensive to keep their landlords from selling to someone else. I don't expect that this was a question of having money burning a whole in their pocket that they could have spent on other things.

 

[switz]

Perhaps buying a viable and operational AI company would have been better

use for funds since Apple’s AI staff are departing faster than dying cockroach’s after Terminex sprays them with arsenic dust

 

[JapanApple]

it’s good that they’re expanding the campuses.

 

[routine_analyst]

Gotta make storage space for all of the cancelled projects. I bet there's a whole building dedicated to a project Titan museum. A glass palace for project AirPort. And another one for the AirPower mat... can't forget that one.

 

[WarmWinterHat]

Perhaps buying a viable and operational AI company would have been better View attachment 2532983use for funds since Apple’s AI staff are departing faster than dying cockroach’s after Terminex sprays them with arsenic dust

I doubt they would be able to get it past the current movement regulators without major concessions in their manufacturing, importing and such, plus they are facing a DOJ trial.

 

[bradman83]

I wonder if this counts towards the $500 billion they promised to invest in the US in the next four years. (I don't think there was a formal definition for what counts as investment so purchasing offices for roughly a billion could be easily added to the investment total).

 

[CapitalIdea]

Perhaps buying a viable and operational AI company would have been better View attachment 2532983use for funds since Apple’s AI staff are departing faster than dying cockroach’s after Terminex sprays them with arsenic dust

There’s an edit button. You don’t have to repeatedly post your disapproval of Apple’s AI endeavors.

 

[CWallace]

If you plan to staff them for a long time, a purchase is likely cheaper than a lease.

 

[mixmastermike]

How about come out with a flip phone and innovate again.

Just get a Samsung if you want a flip phone, the product already exists. You don't need Apple for that.

 

[cicalinarrot]

How about come out with a flip phone and innovate again.

You seem to have a Homer-Simpson-car idea of innovation.

 

[WarmWinterHat]

You seem to have a Homer-Simpson-car idea of innovation.

I think the Motorola and Pixel flip-phones are some of the best looking, and most useful/portable, phones on the market.

 

[StoneJack]

real estate business in California is a great idea

 

[klasma]

Hopefully then can put money to developers and AI research as well..

It does feel a bit like:

 

[bradman83]

Perhaps buying a viable and operational AI company would have been better View attachment 2532983use for funds since Apple’s AI staff are departing faster than dying cockroach’s after Terminex sprays them with arsenic dust

Apple has been hellbent on doing everything themselves under Tim Cook's leadership and puts out subpar software as a result. Apple being a successful AI company doesn't mean they need to develop their own models, just that they need to license and package a model in a way that's useful for businesses and consumers like what Microsoft did with Copilot.

Apple's never had a particularly good track record for developing major software initiatives from scratch. Some if its biggest software successes from the Jobs era were purchased from other companies or open source solutions they licensed: macOS/Mac OS X (NeXTSTEP), iTunes (Sound Jam MP), Safari (KHTML), Final Cut Pro (KeyGrip), Logic Pro (Emagic), and Siri (Siri Inc.) are just a few examples of major products that started elsewhere. They should do the same and buy or license an AI model, put the Apple spin on it, and call it a day.

 

[klasma]

Just get a Samsung if you want a flip phone, the product already exists. You don't need Apple for that.

You do if you want to run iOS on it.

 

[Chytin]

This is Apple saying Working From Home days are over.

 

[DailySlow]

My question is what about the Peppermill Resto? Apple ought to enshrine it.