By Meghan Hall
GI Partners has made a big investment into Sunnyvale as the office market picks up momentum. In a deal that closed yesterday, GI Partners purchased 520 Almanor Ave. for $254 million, or $1,104 per square foot. The seller was the property’s developer, Lane Partners, and the asset is fully leased to Nokia.
The Mercury News was the first to report on the deal.
520 Almanor Ave. totals 230,000 square feet and rises four stories. The property also includes 7,000 square feet of outdoor terrace space, as well as 4,000 square feet of ground floor retail and cafe uses. In all, the property totals 4.4 acres.
Truebeck Construction spearheaded the project’s build-out, and the development was designed by KSH Architects.
The deal only includes the building itself, and not the ground beneath, according to city records. In 2017, Lane Partners executed a 99-year ground lease worth $16.3 million with the property’s original owner, Pace Properties.
The building is located in the ever-popular Peery Park neighborhood of Sunnyvale. The district has been a known hub of commercial activity, with major companies such as Microsoft, Apple and LinkedIn just a few of the big-name tenants in the area.
Across Silicon Valley as a whole, the market is picking up, according to a second quarter report released by JLL. The brokerage firm has reported 2.3 million square feet of active office requirements in the market. Out of 6.8 million square feet of development activity, 72.7 percent is also pre-leased.
“The office investment market remains robust in the Valley,” the report states.
On the capital markets side, transaction volume is picking up. LinkedIn purchased its Sunnyvale headquarters several weeks ago for $323 million, while in April, Tishman Speyer acquired a four-building office campus leased to NetApp for $365 million. The deals underscore demand for key properties as the state continues to re-open and employees enter the workplace.