By Jon Peterson
Silicon Valley Community Foundation has placed on the market for sale a portfolio of assets in Cupertino all leased to Apple totaling 136,105 square feet with total pricing guidance on the assets of $90 million, or roughly $660 per square foot, according to sources that are aware of the asset on the market.
The listing agent on the sale is CBRE. The team that is leading the sales initiative includes Russell Ingrum, vice chairman, Scott Prosser, executive vice president, and Jack Depuy, first vice president. CBRE declined to comment when contacted for this story.
One part of the portfolio totals 90,561 square feet in four different buildings. Two of the assets are office/R&D buildings. These include the 30,000 square foot property located at 20650 Valley Green Drive and the 22,000 square foot asset located at 20740 Valley Green Drive.
There are two other assets in the portfolio that are used by Apple employees. One of these is a 22,561 square foot wellness center located at 20700-20730 Valley Green Drive. The other is a 16,000 square foot fitness center that has an address of 10627-10629 Bandley Drive. All four of the buildings have leases with Apple that expire at the end of 2028 and have three five-year renewal options. The rental rates in the property now are roughly 13 percent below market rates, according to estimates.
Included in the portfolio for sale are two other office/R&D buildings. One of these is a 27,000 square foot property located at 10341-10351 Bubb Road. Apple has a lease in this property that expires in March 2024. The existing lease is around 15 percent below market rates.
The other Apple-leased property is a 18,544 square foot building with an address of 10231 Bubb Road. It has a lease through October 2024 and has a current rental rate that is 14 percent below market.
Over the last few decades, Apple has really made Cupertino a one-tenant town as far as office and R&D space is concerned. The company owns or manages 53 buildings in the city totaling nearly 7.8 million square feet, according to sources that track this information. This space occupies 81 percent of Cupertino’s office and R&D building base.