SUNNYVALE — A giant tech campus in Sunnyvale that’s leased to the proprietor of the Fb app has landed a significant actual property purchaser in a deal that represents a Silicon Valley success story.
Moffett Inexperienced, a campus on Crossman Avenue in northern Sunnyvale, has been bought for $707 million, based on sources with information of the transaction.
CommonWealth Companions purchased the campus, which totals 719,000 sq. ft, from Tishman Speyer, based on the vendor.
“This was a compelling funding for CommonWealth Companions, growing our presence on this strategic, high-growth submarket of Silicon Valley to greater than 1,000,000 sq. ft within the Moffett/Sunnyvale space,” mentioned Brett Munger, chief govt with CommonWealth, a significant actual property growth and funding agency.
The deal represents an enormous win for Tishman Speyer, which purchased the campus in April 2021 for $365 million. That represents an eye-popping soar of 93.7% within the worth of the four-building website in barely greater than a yr.
Just some months later, Tishman landed Fb app proprietor Meta Platforms as a tenant for the whole campus, a deal that was the most important workplace lease in Silicon Valley in 2021.
“Sunnyvale is a superb success story,” mentioned Rob Speyer, chief govt officer with Tishman Speyer. “We're happy that CommonWealth Companions has agreed to purchase the campus, now absolutely leased to Meta. The sale and the lease reveal that Silicon Valley stays a worldwide heart of innovation.”
Brokers Kevin Shannon, Steven Golubchik, Phil Mahoney, Jonathan Schaefler, Edmund Nadjera and Darren Hollak of Newmark, a business actual property agency, represented Tishman Speyer within the sale.
“The numerous investor curiosity on this providing underscores the continued demand for trophy belongings positioned inside markets with a excessive barrier to entry,” mentioned Golubchik, a Newmark govt vice chairman.
The just-bought Moffett Inexperienced campus affords an array of facilities and entry from places of work within the complicated to close by out of doors areas.
“Workplace absorption has been dominated by innovation tenants in search of best-in-class campuses like Moffett Inexperienced to draw and retain expertise,” mentioned Shannon, co-head of U.S. Capital Markets for Newmark.
Among the many Moffett Inexperienced facilities: a gymnasium with a basketball courtroom, lockers, showers, an outside volleyball courtroom, an govt briefing heart, a full-service cafeteria, a number of kitchens, break facilities, cellphone rooms and different widespread areas.
“The marketplace for extremely collaborative, well-designed workplace house with accessible inexperienced house and top-level facilities remains to be robust,” Speyer mentioned.
Tech firms have proven an enormous urge for food for workplace house to lease and properties to purchase within the Sunnyvale space.
“This dynamic submarket has grow to be a hotbed for growth by Google, Amazon, Meta and different high-credit tech firms,” Munger mentioned.
The acquisition means that loads of traders and tech firms search to speculate and develop in Silicon Valley.
Claims in some circles have emerged that a company exodus has sapped the vitality of Silicon Valley.
“This deal undoubtedly reveals the power of the Silicon Valley market,” mentioned Mahoney, an govt vice chairman with Newmark. “The worth and resiliency of Silicon Valley is unmatched.”