SAN FRANCISCO –– CBRE arranged $15 million in financing for 288 South Sunnyvale Ave, an office building in Sunnyvale, Calif., on behalf of a joint venture between affiliates of Four Corners Properties and Westbrook Partners. CBRE will also be leasing the property.
Mike Walker and Brad Zampa with CBRE Capital Markets’ Debt & Structured Finance group in San Francisco arranged the three-year, floating rate loan with two extension options from the San Francisco office of a West Coast-based bank. Ben Knight and Mark Christierson of CBRE are the listing brokers.
The financing will be used to renovate the property into a creative office building with an open floor plan, new exterior and landscaping, which is expected to be completed by January 2024. Brick Inc. is the architect.
Located in downtown Sunnyvale, the two-story standalone property has 27,000 sq. ft of vacant office space, with ample high-speed fiber connectivity. 288 South Sunnyvale Ave is a few blocks away from the Sunnyvale Caltrain station and the Cityline Sunnyvale shopping center, which features Whole Foods and AMC Theater, and adjacent to Silicon Valley’s largest tech companies.
“We’re thrilled to partner with Four Corners Properties and Westbrook Partners again. Our longstanding relationship is a testament to our commitment to provide attractive capital solutions amid turbulent market conditions,” said Mike Walker, Executive Vice President of CBRE. “As tech companies have expanded their real estate footprints in Silicon Valley over the last several years, Sunnyvale has become the submarket of choice. This is a unique opportunity for a small- to mid-size tenant to have their own headquarters with parking in a dynamic downtown location with abundant amenities.”
CBRE reported that more than 150 R&D and Industrial buildings in Sunnyvale, totaling 5.7 million sq. ft., have been torn down for redevelopment, further tightening the market and limiting tenants’ options. However, the pipeline of future development for both office and residential remains robust. In Silicon Valley, there is currently just over six million square feet of office space under construction, with 55 percent of that space pre-leased or owner occupied.
“Bespoke, Class A Office and R&D properties located in vibrant urban centers of this size in Silicon Valley are in high demand, particularly as organizations return to the office and grow their headcount. As companies reevaluate the evolving needs and desires of their workforce, this hidden gem will allow incoming tenants to truly customize and optimize the space for collaboration, innovation and creativity,” said Ben Knight, Senior Vice President of CBRE.