By Jon Peterson
Belmont-based Embarcadero Capital Partners has made the decision to place up for sale the four-building asset in Sunnyvale called Oakmead Terrace. The pricing guidance on this sale is $60 million, according to sources familiar with the sale of the asset.
The listing agent on the sale is NKF Capital Markets, which is leading the sales efforts out of its San Francisco and San Jose offices. The main people involved in the offering are Steven Golubchik, Edmund Najera and Jesse Millman. NFK declined to comment when contacted for this story.
The seller of the property has owned the asset since November of 2016. Embarcadero Capital had purchased the buildings for $12.7 million at that time, according to public records.
Oakmead Terrace involves four, three-story office assets totaling 164,861 square feet. The buildings are located from 1230 to 1290 Oakmead Parkway in Sunnyvale. The sale of these properties will give the new owner a blank slate to create a new office redevelopment with leases in the future that could range from 15,000 to nearly 165,000 square feet. Present configuration of the offering include a café, conference facilities and parking. A range of retail and restaurant options are also within walking distance of the property, according to the property’s web site .
The market data for the class A Sunnyvale office market indicates that there is much more demand than there is supply currently in this submarket. The current vacancy for the first quarter of 2019 in Sunnyvale is around1.8 percent. According to reports, there is plenty of demand with 45 tenants in the market that are looking for 1.8 million square feet of space.
The vacancy office numbers in Silicon Valley have dropped by 67.7 percent since 2014. The current vacancy in Sunnyvale is the second lowest in Silicon Valley, only surpassed by Cupertino at 1.1 percent.
The space requirements in Sunnyvale make up for 18 percent of all Silicon Valley requirements. 77 percent of the Silicon Valley requirements seek space under 100,000 square feet. Technology tenants continue to be the main drivers of the market in Silicon Valley. This sector of the industry makes up for 70 percent of all demanded office space in Silicon Valley.