Cost of Apple’s second 50-acre Cupertino campus could top $500 million

“Steve Jobs said last week that Apple Computer had to beat long odds to find the site of its second campus in Cupertino — and the company’s chief executive wasn’t kidding. Apple also paid big bucks. Jobs was most likely speaking plainly when he told the Cupertino City Council that Apple ended up spending more than it would have liked to acquire the land. The assessed value of the 50 acres Apple is buying tops $160 million, according to property records. Apple would not comment on the purchase process,” Michele Chandler reports for The San Jose Mercury News. “But the purchase price is just the beginning. By the time Apple flattens the site’s old-style structures and builds new offices for as many as 3,500 employees — a process the company expects to take about four years — Apple could easily have spent $500 million, two real estate experts predict. That would make the company’s second campus one of the costliest Silicon Valley commercial ventures in recent memory.”

“Apple now has employees working in about 30 buildings strung across Cupertino, including on Bubb Road and De Anza Boulevard, Cupertino city officials said. Consolidating on one large campus will save the company money and headaches in maintenance and security costs, according to real estate experts,” Chandler reports, “Assembling 50 acres of land in Silicon Valley requires more than just a big pocketbook — it takes discretion, too. If sellers find out a multibillion-dollar company is hunting for land, they’re likely to boost the asking price. So, as with its new products, Apple was equally secretive about its plans for its second campus. Apple worked with development firm Hines Interests to secure land that will become the technology firm’s new campus. The property is roughly bounded by Interstate 280, Pruneridge Avenue, North Wolfe Road and Tantau Avenue… Buying the land is just the first step for Apple. The company is preparing development plans to present to city officials for approval, and may have to have the property rezoned.”

Full article here.

Advertisements:
Get the new iMac with Intel Core Duo for as low as $31 A MONTH with Free shipping!
Get the MacBook Pro with Intel Core Duo for as low as $47 A MONTH with Free Shipping!
Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
Apple’s brand new iPod Hi-Fi speaker system. Home stereo. Reinvented. Available now for $349 with free shipping.
iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
Connect iPod to your television set with the iPod AV Cable. Just $19.
iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.

Related articles:
Video: Steve Jobs meets Cupertino City Council – April 22, 2006
Transcript: Apple CEO Steve Jobs addresses the Cupertino City Council – April 20, 2006
Apple CEO Steve Jobs plans new 50-acre campus in California – April 19, 2006

28 Comments

  1. Well, I am not going to work it out, because it is a patently ludicrous statement, but ron obviously needs to go back to second grade for arithmetic.

    And even for a company with a few billion in the bank, $500 million is not chicken feed.

    MW: “research,” which pretty much is waht ron needs to do while looking for his brain

  2. “What about the environment? This development could kill some kangaroo rats or red roaches.”

    If this isn’t a sarcastic statement, then you should have read that the property is already developed, and is being occupied by several older building. I cant wait to see what the new campus will look like!

  3. evert g.,
    Well considering Apple gets approximately (for sake of argument) $300 in margin on each 17″ MBP, that means (approx.) 1.67 MM MBP’s. Figure about (approx.) 2000 per truck will get you about an 830 vehicle convoy of 17″ MacBook Pro’s.

  4. …and may have to have the property rezoned.

    It’s already zoned commercial. The reason Steve Jobs attended the city council is that he wants to build some sort of monstrosity there which he’s using the city taxes as a leverage.

    I hope it’s a Apple theme park, museum or at least some tours. Imagine the zillions of Apple cultists and tourists that would attend?

    “Now folks the display you see here is Steve Jobs trademark turtle neck sweater and blue jeans. Sure it’s just like the other 746 displays you have just seen, but this one is different, this is the one Steve convinced John Scully to come work for Apple in. And this one is where “the Woz” got drunk at a party at Steves house and puked on it. and this one….

  5. The design should be one building with underground parking surrounded by a forest of trees. The single building is a giant 300 feet glass cube. Think of the Luxor in Vegas. And it links to 1 Infinity campus by way of an underground subway a quarter of a mile.

    Just dreaming…

    MDN Magic Word: design (no kidding)

  6. I’m glad you mathematicians were given something to do this morning, while you were slurping your pablum.

    Hi dork.

    Apple should build the next campus in Valley Center. Ca.

    Not the Next campus, the Apple campus.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.