River Rock Puts Amazon-Leased Torre Plaza in Cupertino on the Market

River Rock, Amazon, Torre Plaza, Cupertino, Silicon Valley, Bay Area, San Francisco

By Jon Peterson

Newport Beach, Calif.-based River Rock Real Estate Group has put on the market for sale the 88,580 square foot Torre Plaza office building located at 10201 Torre Avenue in Cupertino, according to sources familiar with the property.

River Rock did not respond to a phone call seeking comment for this story. The real estate investment firm has hired the San Francisco office of JLL to sell the property. JLL declined to comment when contacted for this story.

The current owner of the property had acquired the asset for $32.7 million in April of 2011, according to public records. Since this time, there have been very few office building of this size that traded in the Cupertino market, as stated by sources that track the sale of office assets in this region. Since April 2011, only eight office properties have traded in excess of $25 million, including Cupertino Gateway which traded twice over the past five years. Further, JLL’s marketing document states that the broker is tracking 206 active tenant requirements representing 7.8 million square feet of tenant demand. Of these requirements, 65 tenants are seeking between 25,000 to 100,000 square feet.

Torre Plaza is an office property that is 100 percent leased to Amazon’s Lab126, also known as the Amazon devices team that developed such products as the Kindle, fireTV and Amazon echo. The lease with this tenant runs through 2025. The property is located within a mile of Silicon Valley’s most creative and dynamic computer technology company, Apple, and less than three miles from the new Apple Campus 2, or Apple Park location, which is expected to be completed this year.

Torre Plaza is expected to be a building that has no capital requirements going forward. It has been institutionally maintained and features high-quality interior and common area improvements. Amazon has reportedly invested around $10 million in the building for features like multiple labs and a clean room. This office building is a three-story facility. It is situated on a 4.15-acre site.

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