An affiliate of Prudential Real Estate is the reported buyer of the Apple-leased property at 10100-10200 N. Tantau Ave., according to a report by the Silicon Valley Business Journal. The Cupertino Gateway campus was sold by an affiliate of Downtown Properties out of Los Angeles and has fetched a $165 million. This would make the profit for the seller at $50 million, which was achieved in just two years. The campus is comprised of three separate buildings for a total of 217,294 square feet, which makes the purchase price $760 per square foot.
Cupertino Gateway is located on the Cupertino/Santa Clara city line and is very close to the main Apple campus as well as other Apple-leased properties in the area, such as the big blue oval at Wolfe Road and I-280. The location, as well as the presence of apparent long-term stable high-quality tenants that are attracting investment in the area. According to a recent, second quarter Silicon Valley Snapshot by commercial brokerage firm DTZ, the city of Cupertino has seen the lowest vacancy rates in the Silicon Valley office market at 1.9 percent, while Santa Clara is just above the regional average at 9.5 percent (average is 8.5 percent). Average asking rates for Cupertino and Santa Clara are $4.48 and $3.98, respectively for Class A space, while the Silicon Valley average is also at $3.98, according to the same report.
Downtown Properties is an affiliate of Gaw Capital Partners based in Hong Kong, who have, apart from the Silicon Valley project, had investments in Seattle, San Francisco, Los Angeles, New York, and Hawaii. The San Jose office of Eastdil Secured, a real estate investment banking company, had arranged the sale.
Photo courtesy of Four Corner Properties