Hewlett Packard Enterprise has sold the Sunnyvale office campus that served as Juniper Networks' longtime headquarters for $330.8 million, even as the tech giant plans to keep working out of the building for at least the next two decades. The buyer, a New York City-based affiliate of alternative asset manager Bluerock, closed the deal in a sale-leaseback structure that keeps HPE as the tenant at 1133 Innovation Way through at least 2047, with an option to extend another 14 years.
The sale documents for the deal were filed last Friday with the Santa Clara County Recorder's Office, according to The Mercury News. HPE spokesperson Adam Bauer confirmed to the outlet that HPE still owns the adjacent building at 1137 Innovation Way, meaning the company retains a foothold on the broader campus even after handing off the main headquarters tower. Bluerock, headquartered in New York and led by CEO R. Ramin Kamfar, has built a portfolio of more than $18 billion to $19 billion in acquired and managed assets spanning 13.5 million square feet nationwide, according to Blue Vault.
Bluerock financed the acquisition with $310 million in borrowed funds arranged by a lending group headed by Wilmington Trust, the Mercury News report notes. The 1133 Innovation Way site sits on an 80-acre campus that Juniper Networks occupied as its headquarters since 2000, encompassing roughly 700,000 square feet of company-owned office space, according to The Registry. Juniper became a subsidiary of HPE after the company completed its $14 billion acquisition of the networking equipment maker.
How the Juniper Merger Set Up the Real Estate Deal
The deal traces back to HPE's closing of its $14 billion purchase of Juniper Networks on July 2, 2025, which came only after HPE settled a U.S. Department of Justice antitrust lawsuit filed in January 2025. The settlement required HPE to divest its Instant On wireless networking unit and auction non-exclusive source-code licenses for Juniper's Mist AI platform, per the Registry's account of the merger's history.
That legal saga did not fully wrap up until this year. U.S. District Judge P. Casey Pitts in San Jose formally approved the antitrust settlement on August 13, overruling a challenge from 13 state attorneys general who alleged the Justice Department had acted under improper political influence, according to the Daily Journal. State officials, led by Colorado, had attempted to intervene and block the transaction after federal regulators dropped their lawsuit. The court's approval came just weeks before the Sunnyvale sale-leaseback closed.
Part of a Bigger Sale-Leaseback Wave
HPE's move fits a broader pattern among Silicon Valley's legacy tech companies, which are increasingly cashing out owned real estate while staying on as tenants. Semiconductor firm Altera listed its 512,000-square-foot San Jose campus with a 10-year leaseback in February 2026, joining recent campus sales by Cisco and Broadcom, the Registry reported. Nationally, commercial sale-leaseback volume grew to $14.4 billion across 714 transactions in 2025, an 18 percent jump in dollar volume over 2024, as institutional investors competed for long-term, investment-grade corporate leases.
HPE still occupies a large office site in North San Jose's Alviso district, underscoring that the Juniper campus sale is a financial restructuring rather than a retreat from Silicon Valley. The company had already been trimming costs elsewhere: HPE announced plans in March 2025 to cut roughly 2,500 jobs globally, about 5% of its workforce, aiming to reduce operating costs by $350 million by fiscal year 2027, and it followed up with late-2025 WARN filings for 52 positions at its San Jose campus.
Sunnyvale's Office Market Stays Hot
Institutional buyers like Bluerock are drawn to Sunnyvale in part because its office market has outperformed the rest of Silicon Valley. The city's office submarket recorded a vacancy rate of 10.9 percent in mid-2026, well below the broader regional vacancy rate of 15.4 to 16.0 percent, according to The Real Deal. That relative strength has been fueled by a run of big-tech commitments this year, including Google's recommitment to 2.1 million square feet at Moffett Place and Apple's acquisition of a 125,800-square-foot building at 580 North Mary Avenue, both in July.
Apple has also been buying at a discount elsewhere in Sunnyvale. The company paid $162.2 million in June for an office building at 684 West Maude Avenue, a 27 percent markdown from the $222 million it paid for the same property in October 2022. Long-duration leases backed by investment-grade corporate tenants, like the one HPE just signed, offer buyers predictable, bond-like income streams that can buffer against those kinds of swings in South Bay property values.
