Jay Paul Co. Purchases Moffett Park Site Slated for Sunnyvale Office Campus

Moffett, Jay Paul Co., Sunnyvale, Office, San Francisco, Bay Area, Silicon Valley, Santa Clara, DES Architects + Engineers Inc, Moffett Towers 2

By Nancy Amdur

The Jay Paul Co. took a step forward in plans for its latest Sunnyvale office project by completing the purchase of 47 acres in the city’s Moffett Park area.

The San Francisco-based developer paid approximately $200 million for two parcels at the Silicon Valley site, formerly owned by security and aerospace company Lockheed Martin. A 30.8-acre parcel at 1111 Lockheed Martin Way was purchased this month for $129 million and an adjacent 16.6-acre parcel was purchased in April for $70.5 million, according to a report in the Silicon Valley Business Journal.

[contextly_sidebar id=”B7lj8GupAEEbvFuK7u9lVWMqyCHtHI5u”]Jay Paul Co. looks to begin construction at the site next year on its 1.65 million-square-foot Moffett Towers 2 office campus, said Phil Mahoney, executive managing director at commercial real estate firm Newmark Cornish and Carey in Santa Clara, who is Jay Paul’s longtime broker.

Project outlines call for a campus featuring five six-story office buildings, said Hanson Hom, Sunnyvale’s community development director. Also on site would be an amenities building and two parking structures. The city expects to complete an environmental impact report for the proposed project by year-end, Hom said. Redwood City-based DES Architects + Engineers Inc. is designing the project. The Jay Paul Co. was not immediately available for comment.

Moffett Towers 2 is near Highways 237 and 101 and within about a half-mile of four other Jay Paul Co. office projects. Its Moffett Towers campus carries 1.8 million square feet and is fully leased, with high-profile tenants including Amazon, Microsoft, Motorola and Hewlett-Packard. Also, technology heavyweight Google has leased 100 percent of the developer’s 1.9 million-square-foot Moffett Place and its 949,000-square-foot Technology Corners developments. Jay Paul Co.’s Moffett Gateway, a 600,000-square-foot office project, is under construction with completion expected next year. That project, not yet leased, will sit on 15.5 acres and include two seven-story Class A office towers and a 15,000-square-foot fitness center.

“There’s certainly good momentum in that area,” Mahoney said. “It’s an area that has been very well received by a multitude of tenants,” for features including access to transportation and companies’ ability to recruit and retain talent.

“It’s proven to be a very successful location,” he added.

A zoning change to allow for an additional 450,000 square feet of office space at the Moffett Towers 2 site will be required for the project, Hom said. The project would replace an existing office campus comprising 924,500 square feet. An amendment also will be necessary to allow higher floor-to-area ratios at the site. The ratio is the building’s floor area to its parcel size. Traffic impact of the project is a key issue being evaluated in the EIR, Hom said.

Moffett Towers 2 falls within the city’s Moffett Park Specific Plan. The plan was adopted in 2004 with a goal of establishing land use policies and development standards to convert the more than 1,100-acre business and industrial district, home to many properties built in the 1980s and ‘90s, into a higher-density Class A office area, Hom said. The plan also allows for hotels, retail and other uses to support primary office use but does not permit residential units.

Jay Paul Co.’s proposed project is expected to be discussed with Sunnyvale’s city council and planning commission this spring.

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