Developing real estate in the Bay Area can be a full contact sport. And the ultimate reward for those efforts is when a big bet pays off in a big way. Jay Paul is finalizing one of those big pay offs with Facebook at its Moffett Towers II project, according to a report by the San Jose Mercury News. The San Francisco developer has now completely leased up the five eight-story buildings that are planned to be completed in 2019.
The proposed 1.7 million square foot Moffett Towers II office campus is located on 47 acres in the City’s Moffett Park district. The area has become a vibrant commercial hub attracting some of the most well-known companies in the high-tech industry such as Google, NetApp, Juniper Networks, Hewlett Packard and Amazon. The development kicked off with the demolition of approximately 925,000 square feet of existing buildings at the site and development five eight-story buildings (1.65 million square feet), two four-story parking structures, one five-story parking structure and a two-story amenities building (50,000 square feet).
The $685 million office development is located at the juncture of Highways 101 and 237, and it was designed by architect DES Architects + Engineers. Jay Paul’s construction company, Level 10 Construction, began the building of the project in August of 2016.
Facebook’s arrival to Sunnyvale signals that interest in real estate is also dependent on the proximity to other technology firms in the area. With Google occupying nearly all of Jay Paul’s first Moffett Towers project, Amazon and Juniper being the neighborhood, as well, there is quite an accumulation of talent located in this geography.
Early in 2017, Amazon took the first of the five buildings located at 1111 Lockheed Martin Way, a 350,000 square-foot building. According to published reports, Amazon will also take a second building in the development as it also looks to expand its services and capabilities in Sunnyvale.
All of the leasing efforts for the landlord have been led by Phil Mahoney, vice chairman at Newmark Cornish & Carey, who works out of the firm’s Santa Clara office. In an email he confirmed that all of the blocks in the Moffett Towers II development are off the market, but he could not specify further about who the tenants are. With Facebook taking the remaining three buildings, it will soon occupy close to one million square feet at the location.
This is not the first time that Jay Paul and Facebook have worked together. In September of 2017, the social media giant took 432,000 square feet of commercial office space at the developer’s 181 Fremont Street building in San Francisco. The structure will be a landmark building in the city, featuring a state-of-the-art exoskeleton designed in a saw tooth pattern. The commercial offices will feature column-free open floor plates offering optimal flexibility, 12.5-foot open ceiling heights, floor-to-ceiling glass curtain walls, unprecedented views, and advanced technological features, according to Jay Paul. It will also include a pedestrian friendly lobby, bike shed with private stalls and an underground valet parking garage.
But Facebook has also been growing elsewhere in the region. In 2017, the company leased up the entire office component of a development that is neighboring its headquarters. That development, called Menlo Gateway, is looking to bring 773,000 square feet of office space in Menlo Park just off of Highway 101. Following that, Facebook took another 100,000 square feet from San Mateo-based Bohannon Company, the developer of Menlo Gateway, in Menlo Park, as well as 190,000 square feet across the bay in Fremont from the Sobrato Organization.
In the last few weeks, Facebook also received building permits to begin the $303 million construction of additional buildings adjacent to its campus and announced plans to develop 1,500 housing units in its home town of Menlo Park.