By Jon Peterson
Washington, D.C.-based The Carlyle Group has sold the 99,500 square foot Lakeside Centre office project in Sunnyvale for $28 million or $281 per square foot, according to Santa Clara County records.[contextly_sidebar id=”0425c618cfbee48db0b8ef6bb7bf3082″]The asset was bought by the Oderio Family Trust based in San Jose. The sale involved two buildings located at 1220-1230 Midas and 530 Lakeside Drive.
Carlyle declined to comment through an e-mail when contacted for this story. The real estate fund manager had hired CBRE to be the listing agent on the sale of the asset. Joe Moriarty, an executive vice president, and Mark Christierson, a senior vice president, of the San Jose office of the company were involved in the sale of the asset. They declined to comment due to a confidentiality agreement that they had signed.
Both of the buildings in the sale had no vacancies in them, according to sources familiar with the asset. The office buildings were built in the early 1980s and had been renovated in the early 2000s.
Oderio has been involved in one other Silicon Valley real estate transaction earlier this year. This was the sale of 1000 and 1032 Elwell Court in Palo Alto, according to published reports. The sales price was $25.5 million. The two buildings total 44,148 square feet, and they were purchase by Google.
The properties in Sunnyvale are both multi-tenant buildings, which the brokerage community believes is becoming very rare in Sunnyvale. “The number of options for tenants looking for A or B+ quality space in multi-tenant buildings in Sunnyvale is very thin. This is mainly due to the fact that many of these properties are being converted into single-tenant kinds of facilities. To find more multi-tenant buildings, tenants would have to go to a place like North San Jose,” says Kalil Jenab, executive managing director/principal for Cassidy Turley Commercial Real Estate Services. He works out of the company’s regional office in East Palo Alto.
Sunnyvale has seen a significant tightening of the office market over the past year. According to data supplied by Cassidy Turley, the office vacancy in Sunnyvale has moved from 6.56 percent in the first quarter of last year to 4.13 percent for the first quarter of this year. Average asking rents have moved from $3.28 per square per month full service to $4.08 over the past 12 months.