SAN FRANCISCO, CALIF. (June 3, 2019) – CBRE Capital Markets has arranged the sale of 650 Almanor, a recently renovated office/R&D building located in the highly sought-after Peery Park submarket of Sunnyvale, California.
CBRE Capital Markets’ Northern California team including Scott Prosser, Joe Moriarty, Russell Ingrum and Jack DePuy represented the seller, a joint venture between Empire Square Group, the NY-based private equity firm, and Aqarat, a leading global real estate group based in Kuwait. The property was purchased by EverWest Real Estate Partners for $39.2 million.
“Perry Park continues to be one of the strongest markets in Silicon Valley. This opportunity provides the buyer with stabilized cash flow from a credit tenant, and future upside as the submarket continues its new development of Class A buildings,” said Scott Prosser, Executive Vice President in CBRE’s San Jose office.
“CBRE was exceptional on this transaction, from beginning to end. With a controlled, 13 targeted and thoughtful marketing process, Scott and his team were able to find the right buyer for this property,” commented Guy Nesdale, Partner of Empire Square Group.
The 54,215-sq.-ft. property is currently 100% leased to a global leading technology company through December 2020. The building was completely renovated in 2015. Renovations included a dramatic two-story all-glass lobby and expanisve window lines on both floors. The interior build-out was fully renovated by the tenant.
Peery Park, Silicon Valley’s newest premier technology park, has experienced a develoment boom since the enactment of the Peery Park Specific Plan. The Plan provides for redevelopment to higher density office projects. Several world-leading technology companies have a major presence in Peery Park.
The robust tenant demand in Sunnyvale, the large tech user land grab in the Northern Silicon Valley submarkets and the reduction of the R&D base as a result of redevelopment have pushed vacancy rates down to historical lows. Sunnyvale vacancy rates have been in the single-digit range since 2012, demonstrating the market’s ability to attract and retain tenants. The severe limited supply in Peery Park will continue to place upward pressure on demand and lease rates in the submarket.
The CBRE Capital Markets’ Northern California team provides investment advisory and debt and structured finance solutions for institutional investors, private capital and corporate owners/users throughout the West Coast.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.