Palo Alto-based Sand Hill Property Company just added another Silicon Valley asset to its portfolio. The company spent $52.5 million, or just over $493 per square foot, to acquire a 106,460-square-foot two lot building located at 280 N. Bernardo Ave. in Mountain View, according to public documents. The tenant in the building is Avid, a music and video technology company, whose lease runs until 2021, according to Compstack.
The seller of the property was an entity associated with San Francisco-based D.R. Stephens & Co., which has owned the building since July of 2012. According to the report, the sale was brokered by Cushman & Wakefield’s Nick Lazzarini, managing director, who works out of the firm’s San Jose office.
The property sits in an intensely technologically-driven area. Neighboring enterprises include Honda Innovations, Toyota Technology Center, MedImmune and the SETI Institute. The property, which is on the corner of North Bernardo Avenue and Central Expressway, is also in close proximity to a lot of housing opportunities in the area.
There are no immediate plans to redevelop the property, however, the new owner will likely be able to realize some added value when Avid’s lease expires. The ten year lease was initially signed in 2011, so it is likely that the rents in the property reflect rates that are significantly under market rates for this area.
Sand Hill Property Company has been a player in Silicon Valley real estate for several decades. The company was founded in 1988 by Peter and Susanna Pau and has developed more than 40 projects encompassing 14 million square feet of building area throughout the Silicon Valley, ranging in size from a stand-alone retail store to multi-use city centers containing millions of square feet in building area, according to the company’s web site. The company has developed projects of all use types, including shopping centers, office complexes, hotels and mixed-use communities. It is currently involved in a proposal to transform Cupertino’s long-struggling 1.3-million-square-foot Vallco Shopping Mall into a mixed-use project that would feature two million square feet of office space, housing, hotel and entertainments facilities. The Hills at Vallco, as the project is called, has been stalled in the City of Cupertino planning process, which Sand Hill is hoping to revive.