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South Bay office building that was once the headquarters of bankrupt biotech company 23andMe has been sold at a significantly reduced price. The three-story, 156,000-square-foot building at 221 North Mathilda Avenue in Sunnyvale was purchased by Spear Street Capital for $87.8 million, according to documents filed with the Santa Clara County Recorder's Office.

    This sale represents a massive decline in value from its peak of $188.6 million in early 2022 and even lower than its assessed value of $140 million in January 2024. The building was previously sold to Stockbridge Capital Group for $183 million in 2019, just before the coronavirus outbreak that led to widespread economic disruption.

    The pandemic's impact on the office market has been particularly severe, with many companies downsizing or abandoning their leases due to remote work arrangements. As a result, commercial property values have plummeted across the Bay Area. The sale of the Grove 221 building reflects this trend, with Spear Street Capital acquiring it at a price that is 52% lower than its previous sales price and 37.5% below its assessed value just months prior.

    The new owner of the building has a familiar connection to the property: Spear Street Capital developed the site in 2014 and sold it to Stockbridge in 2019 for $183 million. The company's purchase of the building at a significantly reduced price highlights the ongoing challenges facing commercial real estate investors in the Bay Area.