Deutsche Buys Apple-leased Office Building in Cupertino

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By Jon Peterson

New York City-based Deutsche Asset & Wealth Management has acquired the 383,000 square foot Results Way Corporate Center located at 5 Results Way in Cupertino.

“We are pleased to acquire Results Way, which will provide attractive cash returns to our clients. Cupertino is a dynamic market and recent improvements have transformed Results Way into a modern, state-of-the-art creative campus that should meet the tenant’s needs over the long term,” says Todd Henderson, head of real estate Americas for Deutsche in a prepared statement. He declined to comment on other details of its investment. The cap rate on this sale was approximately 6 percent, according to sources familiar with the transaction.

The asset is a 10-building campus property. It has been fully renovated within the last two years. Apple is the sole tenant in the property on a NNN lease. The property covers 20 acres and is located just southwest of Highway 85 and Stevens Creek Road in the Bubb Road area of Cupertino. Recent improvements to the property have been certified LEED Silver.

The asset was sold by Palo Alto-based Embarcadero Capital Partners. According to its Web site, the firm had owned the property since October of 2006. The company did not respond to phone calls seeking comment for the story. The real estate investment firm sold the property though Eastdil Secured in its Silicon Valley office. One of the people on the listing was Managing Director Greg Cioth. He did not return phone calls for comment.

Results Way is considered to be an office/R&D project. The fact that this property is fully leased should not be a surprise. According to data from Cassidy Turley Commercial Real Estate Services, the R&D market in Cupertino has no vacancies at all. This situation has been the case for over a year.