By Meghan Hall
Fortinet, a multinational cybersecurity company, has acquired a new property in Sunnyvale, not far from its current headquarters. In a deal that recorded yesterday, the firm purchased a 4.7-acre site at 1484 Kifer Road for $44 million, or about $340 per square foot. Public records indicate that the seller was an entity affiliated with Keystone Consulting.
The property is currently developed with a single-story building constructed in 1979. It totals 129,587 square feet, according to a listing on LoopNet. The building features four interior dock doors, three drive-in bays, six exterior dock doors and 70 standard parking spaces.
Newmark Executive Managing Director Joe Kelly was marketing the property for sale on behalf of Keystone Consulting. As of this writing, Newmark had not yet returned The Registry’s request for comment.
Public records show that Pasadena-based Keystone Consulting acquired the asset in February of 2019 for $33 million. The company purchased it from the City of Sunnyvale, who had dubbed it as surplus land. Previously, the property used to operate as the Unilever margarine factory.
At the time of the deal, the new owners were to redevelop the property into low-income housing. However, those plans never came to fruition. Keystone Consulting was one of 11 bidders for the site, and whose competition included the likes of LBA, Prologis, Four Corners Properties and Divco West. Keystone won out with the highest bid.
The site is not far from Fortinet’s 172,000 square foot headquarters, which broke ground in the summer of 2019. Prior to moving forward with the development, Fortinet had called Sunnyvale home for more than 20 years. Acquisitions such as this one will continue to ensure that the company stays local and is just another example of a local company’s commitment to the Bay Area.