On the heels of purchasing 101 Tech Center just a couple of weeks ago from San Francisco-based Ellis Partners for $165 million, and n1 Campus in North San Jose, which is in close proximity to the 101 Tech site, for $138 million, the Cupertino-based tech giant decided it wanted to keep its feet firmly in Sunnyvale, as well.
The Registry was the first to break the news of Apple leasing the entire 777,000 square feet of the planned clover-shaped structure at the corner of Central Expressway and North Wolfe Road in Sunnyvale on September 16th. After less than a month, sources confirmed that Apple is in works to buy out the entire development from Menlo Park-based Landbank Investments for an undisclosed price.
The deal is still in the works, but it has been confirmed that the original architects that have created the iconic visual of the development, San Francisco-based HOK, have been replaced on the site by another San Francisco architecture firm, Korth Sunseri Hagey. Korth has designed such renown Bay Area campuses as the GoPro headquarters in San Mateo, the Oracle headquarters in Redwood Shores, and the Brocade headquarters in San Jose for Hunter-Storm Properties, among others.
According to sources aware of the details between Apple and Landbank, the original lease was for a period of 10 years at $3.50 NNN for the cold shell. By some estimates, adding a 6 percent cap rate on that figure, it is not outside of the realm of possibility that Apple could be paying up to $700 per square foot, or roughly $540 million for the entire development.
Earlier this year, The Registry learned that Apple and Landbank were investigating resubmitting a proposal to the city for even more square feet on the parcel, above the approved 777,000 square feet. A formal proposal was never submitted, however, it may indicate one of the options that Apple would like to explore in the future.
According to sources with knowledge of the transaction, Eastdil Secured is helping Landbank in the transaction.
We will update this story as more information becomes available.