SUNNYVALE — An eye-catching South Bay office building that was once the headquarters of bankrupt biotech company 23andMe has been bought at a price that reflects a massive decline in the property’s value.

Spear Street Capital, acting through an affiliate, purchased the building at 221 North Mathilda Ave. in Sunnyvale for $87.8 million, according to documents filed on June 5 with the Santa Clara County Recorder’s Office. Colliers’ commercial real estate executive vice president David Sandlin helped to arrange the deal.

Stockbridge Capital Group had bought it for $183 million in 2019. The new owner is the company that developed the building and then sold it to Stockbridge.

In 2014, Spear Street Capital bought the property for $16.1 million. In 2015, the developer obtained a $10 million loan for the site, county records show.

The three-story building totals about 156,000 square feet. Stockbridge Capital bought it immediately after 23andMe, a genomics and biotech company that in 2021 had a market value of $6 billion, leased the property.

The name of the office complex, Grove 221, is a reference to the fruit groves and orchards that once dotted that part of Silicon Valley, as well as a long-gone Libby’s fruit cannery that had operated nearby for decades.

The building’s value peaked in early 2022 at $188.6 million, according to an estimate produced by the Santa Clara County Assessor’s Office.

But by 2023, the building had an assessed value of $160 million. In January 2024, that value had plunged to $140 million.

The effects of slumping property values extend beyond the owners of real estate. Property value trends can imperil revenue for an array of public agencies. If real estate values turn soft in a region, the decline could impede a crucial revenue stream for cities, counties, regional agencies and school districts.