By Meghan Hall
Investors continue to be bullish on Mountain View, as different property types continue to sell for healthy prices. At the end of last week, two office buildings part of Symantec’s former headquarters traded hands after being purchased by investors with a history of activity in the Bay Area. In a deal that closed on April 2nd, Steelwave and Angelo Gordon & Company purchased 515 N. Whisman Rd. and 545 N. Whisman Rd. for $100.5 million. The seller was Symantec–now known by NortonLifeLock–which specializes in software security.
The two buildings are part of a 10-asset portfolio that NortonLifeLock has been vying to sell since early last year. The portfolio totals 706,737 square feet, and initially, NortonLifeLock had sought to sell the entire portfolio to a single buyer.
“Never before offered to the marketplace, the offering represents a generational opportunity to acquire a portfolio of 10 buildings totaling 706,737 square feet in the heart of Silicon Valley,” stated an initial offering memorandum circulated by Cushman & Wakefield.
The other eight assets within the portfolio include five buildings at 350 Ellis St. totaling 428,000 square feet, and several buildings at 455 487 and 501 E. Middlefield Road which include 128,000 square feet of space.
515 N. Whismanand 545 N. Whishman each total 76,200 square feet and are located within easy access of the Bayshore Freeway and State Routes 82 and 237. Google’s Fairchild campus, as well as DiDi Labs, eightfold.ai, and Wipro Technologies are just a few of the companies that occupy buildings in the immediate vicinity of the assets.
In order to purchase the properties, Steelwave and Angelo Gordon & Company also obtained a loan of up to $102 million from Parlex 2A Finco. According to The Mercury News, who first reported the deal, Parlex 2A Finco is a unit of Blackstone Mortgage Trust.
At the end of 2020, the Silicon Valley faced its fifth consecutive quarter of negative absorption, and overall vacancy increased to 11.28 percent. Mountain View remained a bright spot for the submarket, with vacancy at 8.17 percent and 186,013 square feet of positive net absorption. Major investment transactions remained few and far between, according to analysis released by brokerage firm Newmark. Deals such as Steelwave and Angelo Gordon & Co.’s acquisition are helping to move the needle, providing a foundation for recovery as 2021 continues.