By Jon Peterson
Sunnyvale-based NetApp has placed on the market for sale its three-building empty office campus in Sunnyvale located at 475 and 495 East Java Drive and 1330 Geneva Drive, according to sources familiar with this market. The property is listed with no official asking price and the buildings are available for either sale or lease.
The seller has selected Newmark Grubb Knight Frank/Newmark Cornish & Carey as the listing agent on the sale. One of the people involved is Phil Mahoney, a vice chairman with the company in its Santa Clara office. He declined to comment when contacted for this story.
NetApp in their business groups are growing faster in other locations, and the company views these three buildings as excess real estate, as stated by sources that are familiar with the company’s activities.
The three buildings in the sale were constructed between 1999 and 2004. The assets are located on a Valley Transportation Authority light rail station granting it the specialized zoning overlay, the Moffett Park Transit Oriented Development. This allows for an increased FAR of 70 percent, which could increase the total square footage of the three buildings from 381,266 square feet to over 500,000 square feet.
The existing buildings are either three or four stories. They do have many on-site campus kind of amenities that technology companies are looking for in such settings. These include a café, showers, patio, auditorium and proximity to public transportation. The assets are within the Moffett Park submarket where many technology companies have made a long-term commitment to locate. Some examples are Google, Amazon, Apple, Microsoft, BloomEnergy and Juniper Networks.
The Moffett Park submarket close to Highway 237 is one that is characterized by limited amount of space to lease for current tenant requirements. In this region, there are no buildings that have 100,000 square foot or more spaces available. This space requirement is where 79 percent of all tenant demand along 237 is, according to sources tracking the leasing demand in that market.
The office market within Moffett Park has seen very strong market numbers over the past six years. Since 2011, the space availability has dropped from 23.6 percent to 4.7 percent. During the same time period, rents have increased nearly 33 percent, moving from $31.32 per square foot to $41.29 per square foot.