(EDITOR’S NOTE: According to public documents, the transaction closed on March 26th, 2019 for $28,050,000. The seller was an entity associated with Los Altos, Calif.-based David Wen.)
Principal Real Estate Investors and SteelWave, LLC are pleased to announce their joint-venture purchase and their immediate commencement of construction of 285 Sobrante Avenue in Sunnyvale, where they plan to build a 125,000 SF Class A office building that is scheduled for completion in fourthquarter 2020. Currently two multi-tenant industrial buildings sit on the property.
Given the growing demand for Class A office space in Silicon Valley, Principal Real Estate Investors and SteelWave saw strong potential for a well-designed office building at the 285 Sobrante location, a short five-minute walk to the Sunnyvale Caltrain Station. The location also offers easy access to multiple freeways, restaurants, hotels and housing. According to Steve Dunn, Senior Managing Director at SteelWave, “Companies continue to compete fiercely for the best talent, and the easy access to Caltrain and downtown amenities allows a company to significantly extend their reach for high-demand workers, a genuine competitive advantage in these conditions.”
The Central Station project will be LEED Gold and incorporate floor-to-ceiling glass, 31,250 square foot floor plates, balconies, multiple patios, a lobby bar, and various outdoor amenities, including a bbq and bar area, fire pits and outdoor games.
The property also offers a degree of future growth flexibility unique in more established Silicon Valley submarkets. Specifically, redevelopment plans for an adjacent parcel to build a 135,000 square foot office space are in process, offering an easy expansion strategy if needed in the near-term.
Dave Sandlin, Executive Vice-President and Principal at Colliers International, said, “We envision this property working well for a variety of possible tenants—from well-funded startups, to fully established corporations.”
Principal Real Estate Investor’s Jeff Uittenbogaard, Investment Director said, “SteelWave has an established track record in the Silicon Valley, and we have had a lot of success partnering with them over the years. This is a well-designed asset in a tremendous location.”
SteelWave is a full‐service commercial, multifamily and mixed‐use real estate management, operating company and investment management firm. SteelWave and its predecessor companies, Legacy Partners Commercial and Lincoln Property West, have been active in commercial real estate for 47 years. We’ve built a reputation for successful execution by sourcing sound investments in our 6 key markets: Northern California, Southern California, Denver, Seattle, Portland and Texas. As a vertically integrated leader in the industry, we source, entitle, design, finance, develop, renovate, lease, manage and sell real estate investments on behalf of many well‐known institutional clients.
Principal Real Estate Investors manages or sub-advises $74.3 billion in commercial real estate assets (As of December 31, 2018). The firm’s real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is a dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®. Principal Real Estate includes the companies of Principal Real Estate Investors LLC and Principal Real Estate Europe Limited.
About Colliers International
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