[contextly_sidebar id=”ceVSkr9ng8pJTSXSoMLOhagYWvCHnT2j”]Earlier this month, Lockheed Martin sold a 10.17 acre portion of a 22.7 acre site it owned through a leasehold interest for a reported $52.5 million to Peter Pau’s Sand Hill Property Company, according to sources with knowledge of the transaction details. Based on public records, this price represents roughly 25 percent premium over the 2014-2015 assessed value of the lot, which was listed at $41.5 million.
Located in one of the most prestigious cities in Silicon Valley, the Stanford Research Park offers not only access to one of the world’s top universities in the technology development world, but also proximity to technology firms such as Hewlett Packard, Tesla, Google, VMware, Skype and Cloudera.
The site, located at 3251 Hanover Street in Palo Alto, allows for an office or R&D redevelopment at a minimum of 177,000 square feet, according to a marketing document provided by JLL, which acted the exclusive advisor for the property owner.
Sand Hill Property is no stranger to this geography. Just a year ago, the Menlo Park-based investor and developer purchased another building on the same road, the 129,000-square-foot building at 3175 Hanover St., which is leased to esteemed law firm Cooley LLP. The building sits on 7.1 acres and is next to Hewlett-Packard’s offices. The purchase also included a 2.9-acre parking area at 3300 El Camino Real.
Stanford Research Park is home to more than 150 companies, located in 162 buildings across nearly 700 acres of land in Silicon Valley. The park is one of the best performing markets in the Bay Area, recording a current vacancy at 0.6 percent. This has naturally driven the lease rates to be higher than average across the region and are presently reaching $5.50 per square foot per month triple net, according to JLL.
This, of course, is driven primarily by the technology tenants continued hiring and expansion, which over the last 18 months has seen nearly 90 percent of all leases go to such firms in the broader Palo Alto sub-market.
Inside the park, there is no space available for rent that is over 27,000 square feet, and a total of 145,000 square feet is available for lease broken up between 13 separate locations.
On the JLL marketing side, Erik Doyle, Will Connors and Michel Seifer acted as the brokers for Lockheed.