South Bay Development Places Campbell Office Asset up for Sale, Pricing Could Reach $150MM

By Jon Peterson

South Bay Development has placed on the market for sale its office building project in Campbell known as Creekside @17. The pricing guidance on this property comes in at $150 million, according to sources familiar with the sale of the property.

South Bay has hired the San Francisco office of Newmark Knight Frank to be the listing agent on the sale, and the team involved with this project includes Steven Golubchik, vice chairman, Edmund Najera, executive managing director, and Daren Hollak, associate director. Both South Bay and Newmark Knight Frank declined to comment when contacted for this story.

The potential sales price would be nearly double the amount of the original construction and land costs that South Bay and equity partner, The Carlyle Group, incurred for the project. The owners spent roughly $80 million when the project was just getting started in 2017.

While South Bay acted as the developer of the project, The Carlyle Group invested in the project on behalf of one of its opportunity commingled funds. In 2018, the project also received a $63.5 million bridge loan for the project, which was provided by Oaktree Capital Management and arranged by HFF.

Creekside @17 is located at 675 Creekside Way in Campbell. The building totals 177,815 square feet that was developed over five stories. It also includes a total of 1,002 parking spaces. 

The property is 100 percent leased to 8×8, a cloud provider company. This tenant will use the space for its corporate headquarters, and it has signed a leased that lasts 11 years. The company will be moving into the property sometime during the first quarter of next year.

The property has many of the amenities that technology tenants are looking for when considering a corporate headquarters, such as this location. This includes 105 meeting rooms, a fitness center and game room. In addition, the property if close to a VTA stop, and it is a short walking distance to a retail amenity base, including the Pruneyard Shopping Center. The building is also next to a Courtyard by Marriott hotel.

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