By Meghan Hall
The site of a $125 million proposed office project has traded hands, giving its new owner the potential to expand greatly. According to public documents and an SEC Filing, Palo Alto Networks, Inc., recently closed on a deal to purchase an underutilized office property in Santa Clara for $51 million. The seller of the property was developer Terrence J. Rose Inc. Real Estate, who originally received entitlement approval to substantially reposition the property back in June of 2017.
Palo Alto Networks entered into contract to purchase the property of February this year, and the sale officially closed on March 3rd, according to Santa Clara County property records. The nearly six-acre property, located at 3375 Scott Boulevard and known as the Garrett Business Center, includes four office buildings and 76,672 square feet of rentable space. The property was originally built in the late 1970s.
With the new entitlements in hand, Palo Alto Networks can redevelop the property into six-story office building totaling 250,000 square feet. The project features 41,500 square foot floor plates, floor-to-ceiling glass walls, and a rooftop deck with an outdoor kitchen. The sixth floor will also have a balcony along the eastern and southern edges of the building. Ground floor amenities include several more outdoor kitchens, seating areas, food truck zone, rose garden and horseshoe courts. At the time of approvals, the estimated project cost was $125 million.
Palo Alto Networks, a multinational cybersecurity company, is headquartered in Santa Clara, and its offices are located just adjacent to the Garrett Business Center Property. In January of this year, AirBnB subleased 301,000 square feet from Palo Alto Networks at 4301 and 4401 Great America Parkway in North San Jose. The buildings are owned by The Sobrato Organization.
It is unclear what Palo Alto Networks’ plans are for the site and its growth. However, the property also currently serves as the corporate headquarters for Terrence J. Rose Inc. Real Estate, according to the firm’s website. Since its founding, the firm has developed more than three million square feet of commercial space across the western United States.