Irvine Company Sells Portion of 32-Acre Sunnyvale Redevelopment Site for $73MM

Irvine Company, Taylor Morrison Homes, Sunnyvale, 1AMD Place
Image Courtesy of City of Sunnyvale

By Meghan Hall

Tracts of developable land in Sunnyvale are continuing to trade for a premium price—a positive for sellers looking to make the most of the market. In a transaction that closed at the beginning of June, Newport Beach, Calif.-based Irvine Company sold part of Sunnyvale’s former AMD site for $73 million as part of a greater effort to redevelop the 32.5-acre campus into housing. According to project documents, the buyer was Taylor Morrison Homes.

The property is located at 1090 E. Duane Ave. in Sunnyvale. Irvine Company purchased the site in 2016 for $175 million from New York-based W.P. Carey, a global net-lease REIT that provides long-term sale-leaseback and build-to-suit- financing solutions for companies. W.P. Carey had owned the site since 1995, when it acquired the asset for $95 million.

Upon acquiring the property, Irvine Company has worked over the past several years to procure entitlements to redevelop the site. In April of 2019, the Sunnyvale City Council approved Irvine Company’s plans for the site, and in October of last year, the firm entered into a development agreement with the City. The approved plans—denoted as 1AMD Place—will permit Irvine Company and affiliated entities to construct 944 apartment units. The apartments will be a combination of five-story mid-rise apartment buildings and three-story walk-up apartment buildings; six percent of the units are to be reserved for very low-income households. 

The project would also include landscaping, parking, pedestrian improvements and a 6.5-acre park, located along the northern side of the proposed Indian Wells Ave. extension.

The project also includes a maximum of 107 three-story townhomes with 13 percent of affordable units. The units will front the park, and range in size from about 1,800 square feet to more than 2,000 square feet. The homes each include three bedrooms, 3.5 bathrooms, a two garage, and for some units, outdoor decks and patios. Project documents indicate that the parcel Taylor Morrison purchased is affiliated with the townhome portion of the development. The property totals about 6.05 acres

Taylor Morrison, which builds for-sale housing stock across the United States, has been recent in Sunnyvale over the years. Most recently, the developer sold out of its 136-unit project called “Nova at the Vale.” The project is located just up E. Duane Ave. from 1AMD Place. A second development, entitled Elev8tion and located of N. Mathilda Ave. in Sunnyvale, is pre-selling. The units range from two to four bedrooms and are between 1,378 square feet and 2,333 square feet in size. Pricing begins at $1.28 million.

According to Polaris Pacific, closings for Silicon Valley condominiums were down at the beginning of May, although they are likely to rebound as buyers return to the market after a brief COVID-19-related pause. During May, condominium sales dropped 60 percent from the previous year. However, it still remains a sellers’ market, with little inventory available and only about a three-month supply of remaining inventory. According to Polaris Pacific a “balanced” market means there is about six months of remaining inventory. Numbers of new condominium product in the pipeline are also minimal—across Campbell, Cupertino, Santa Clara and Sunnyvale there are only 501 condominiums in the market, a positive for developers looking ahead.

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