Hearthstone Purchases 11.8-Acre Sunnyvale Site for $98.5MM

By Kate Snyder

In the heart of Silicon Valley, Sunnyvale has seen its share of nearly every type of development, including a recent sale of almost 12 acres for nearly $100 million.

Two sites in Sunnyvale, totaling 11.8 acres, were sold to an entity affiliated with Hearthstone Inc., according to a report by the San Jose Mercury News. The firm paid $98.5 million for the property. According to public records, the seller was an entity affiliated with three private Connecticut-based investors.

Additionally, in a separate deal, an entity affiliated with Toll Brothers has obtained an option to buy the 11.8 acres from Hearthstone. The site, located at 1175 Aster Ave., is expected to be developed into 329 condominiums or townhomes, according to the report.

Hearthstone is based in Calabasas and according to the company’s website is dedicated to managing institutional capital in residential housing in select target markets. Throughout the past 30 years that the firm has been in business, it has invested more than $16.5 billion in homebuilding projects.

“Since its inception, Hearthstone has become a national leader in investing in single-family homebuilding and residential land development projects across the country,” the firm’s website states.

Based in Fort Washington, Penn., Toll Brothers is an award-winning Fortune 500 company founded in 1967 dedicated to building luxury homes across the United States, according to the firm’s website. It currently builds in 24 states nationwide.

Recent real estate activity in Sunnyvale has included both residential and commercial transactions.

Atlanta, Ga.-based Pulte Homes bought a five-acre parcel in Sunnyvale for $52 million earlier this year from the Sobrato Family Foundation, according to previous reporting from The Registry. The lot, located at 1139 Karlstad Ave. is just south of State Route 237 and east of US Highway 101, at the top of Silicon Valley’s Golden Triangle.

Another recent Sunnyvale transaction was a deal recorded in September where an entity affiliated with Ellis Partners purchased a five-acre Moffett Park Drive property for $28 million, or roughly $314 per square foot. That property included two buildings constructed in 1985 and is recorded at 88,961 square feet. Los Gatos-based Cilker Orchards Management was the seller.

Earlier this year, Blackstone Real Estate also acquired two Sunnyvale hotel properties for a combined price of $104.9 million. The deal included the 145-room Courtyard by Marriott hotel for $75 million, or $517,241 per room, and the 94-room TownePlace Suites for $29.9 million, or $318,085 per room.

West Coast Commercial Real Estate News