How a Facebook Deal Made Prologis $300 Million on a Teardown
- Social media giant had to double its offer, Prologis CEO says
- Transaction shows how tight supply has become in parts of U.S.
This article is for subscribers only.
All eyes were on Facebook Inc. and its ambitious expansion plans when the social-media giant bought a 21-building campus in Menlo Park, California, from Prologis Inc. Turns out the 2015 deal turned a tidy profit for the warehouse landlord -- and made its other properties in the area more valuable.
Prologis paid $110 million for the site about a decade ago, Chief Executive Officer Hamid Moghadam said in an interview Wednesday at Bloomberg’s headquarters in New York. Facebook ultimately had to double its initial offer for the complex, to about $400 million. Now the warehouses are being torn down to build housing and more work space for the social-media company, Moghadam said.