By Jon Peterson
“We have made good progress on our plans to update and transform the project and expect to start our renovations this summer. We anticipate that it will take approximately three to five months to complete all of the work. The biggest part of this transformation will be modernizing the façades and creating additional outdoor amenity areas,” says Nate Carlson, an asset manager with Swift. Another part of the improvements will be to upgrade the identity of the project through new signage and wayfinding.[contextly_sidebar id=”0RAB9yBfOoNnzVZxoxFn59f2FCkhOccp”]Swift had stated that the planned amount to spend on the renovation was approximately $15 million when it had paid $66 million to acquire the property in July of 2015. The property had gone by the name of Airport Technology Center previously, which the new owners have now rebranded @Central.
Swift has made good progress on the lease up of the vacant space in the property. The most recent lease was the expansion of Silver Peak Systems. Silver Peak Systems was originally in 43,000 square feet and will now occupy the entire 74,000 square foot 2860 building. They have been at the project since 2013, and their new lease will extend their occupancy for an additional six plus years. The tenant was represented in this transaction by Robert Badagliacco, a senior vice president with Sperry Van Ness. Cushman & Wakefield represented Swift in the lease negotiations.
One of the other major tenants in the property is WL Gore. The Gore-Tex manufacturer leased up the 69,000 square foot building located at 2890 De La Cruz soon after Swift purchased the building. “We were pleased to immediately address the largest vacancy in the project, and this lease was a validation of our original belief that there was strong demand for larger blocks of space that tenants who were being displaced out of pricier markets like Mountain View and Sunnyvale could immediately occupy,” said Carlson.
Swift bought the @Central complex for its commingled fund, Swift Real Estate Partners Fund I. Presently, the real estate firm is nearing the end of raising capital for Swift Real Estate Fund II, and the total capital raise on this fund should be around $400 million. This fund will continue Swift’s strategy of buying value-add office and industrial properties on the West Coast in the San Francisco Bay Area, Southern California, Seattle and Portland.