The Sunnyvale Research Center, a 224,000 square-foot office complex spread across four buildings located at 1050, 1060, 1070 and 1090 E. Arques Ave. sold recently in an exchange transaction valued at approximately $100 million, or roughly $446 per square foot. While the property was purchased by an entity owned by First American Exchange, two sources with knowledge of the transaction confirmed the buyer is Santa Clara-based Applied Materials.
The property is leased to Apple Computer, which took the entire campus in early 2012. It is also in proximity to other properties occupied by Applied Materials.
The property consists of four two-story buildings, which were built in 1985 with a number of recent renovations from 2012 to 2016, according to a property flyer from Colliers International. The total site area is just over 14 acres. The office buildings range in size between 35,330 and 74,011 square feet and are adaptable to many uses with private of ces, conference rooms, and large open areas for cubicles.
IStar Financial was the seller of the property.
Applied Materials is a public company that supplies equipment, services and software to enable the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones and televisions, and solar products. The company is part of the NASDAQ’s 100-Component and S&P’s 500 Component lists. The company has a market cap at around $61 billion with annual revenues surpassing $14.5 billion.
In a story by the San Jose Mercury News, which broke the news on the transaction, there is some speculation that Applied may be landbanking the property for its own future expansion efforts. Certainly the line of business in which Applied Materials is active today shows that interest for its products will go unabated for the foreseeable future. In the meantime, having Apple Computer as a tenant should make the investment and the remaining time on the lease a worthy endeavor.