By Kate Snyder
Sales activity in Silicon Valley continues with a recent purchase of a Sunnyvale property by a Bay Area real estate firm.
According to sources with direct knowledge of the transaction detail, the property at 335 E. Moffett Park Drive was bought by an entity affiliated with Ellis Partners for $28 million, or roughly $314 per square foot, in a deal recorded on Sept. 16.
The five-acre Moffett Park Drive property includes two buildings constructed in 1985 and is recorded at 88,961 square feet, according to public records. Los Gatos-based Cilker Orchards Management was the seller.
“We are looking at the purchase of the property on a long-term basis. Our plan, for now, is to get the property stabilized and leased up. For us, stabilization would mean to have the property 80 percent occupied or more, and the asset is now two-thirds full. We have not chosen a firm at this time to oversee the leasing efforts on the property,” says Jim Ellis, co-founder of Ellis Partners.
It s likely that the new owner will keep the property as office space, although there are considerations for alternative uses, as well. “A potential new use for the property in the future could be turning the property into an R&D facility,” said Ellis. “The existing makeup of the property would allow for this since there is enough power to support this kind of real estate down the road.”
The listing agent on the sale was the San Francisco Bay Area office of Newmark. One person involved with the transaction was Steven Golubchik, executive vice chairman and president of West Region Capital Markets.
Ellis Partners is a privately-owned commercial real estate investment and development company founded in San Francisco almost two decades ago. Since its founding, the firm has, according to its website, “successfully acquired and developed assets valued at over $2.5 billion.”
Office real estate in the Sunnyvale area has in the past several months gone to tech firms, retail companies, and real estate agencies for redevelopment.
The Moffett Park Drive property is located in a commercial area that has seen some redevelopment in the past several months. In 2021, a nearly two-acre, 28,322 square foot property at 352 Java Drive was purchased for $21.1 million, according to public documents.
Apple also recently expanded its operations in Sunnyvale with the acquisition of a 58,200 square foot office building for $46.5 million, or nearly $800 per square foot, earlier this month, according to previous reporting by The Registry. The property was sold by Harvest Properties and Invesco Real Estate.
In August, Blackstone Real Estate also paid $104.9 million for two Sunnyvale hotel properties – a 145-room Courtyard by Marriott hotel for $75 million, or $517,241 per room, and the 94-room TownePlace Suites for $29.9 million, or $318,085 per room, according to previous reporting by The Registry.